LHC halts FIA's inquiry against FBR officials in tax refund case

The Lahore High Court (LHC) has ordered the Federal Investigation Agency (FIA) to halt its investigation against Federal Board of Revenue (FBR) officials in a tax refund case. The court issued a notice to the FIA, directing it to submit a written response by August 13.

The case revolves around allegations of corruption and kickbacks among FBR officials related to tax refunds. According to Express News, on May 30, the FBR made four officers Officer on Special Duty (OSD) and initiated an internal inquiry after the matter reached the FBR chairman. However, no significant progress was reported.

During this period, the FIA summoned FBR Member Operations Mir Badshah Khan Wazir as part of an investigation into alleged corruption, kickbacks, bribery, and illegal tax refund approvals for major companies.

The notice required Wazir and other officials to appear on July 26 and provide relevant documents and evidence. The inquiry focuses on illegal activities within the Large Taxpayer Office (LTO) in Lahore over the past five years.

Wazir, a close associate of the FBR chairman, has submitted his response to the FIA. Previously, four senior Inland Revenue officers were suspended for their involvement in a multi-million rupee tax refund scandal. The summons is part of the FIA's broader efforts to address corruption within the FBR.

In response, the FBR filed a petition against the FIA in the LHC, which resulted in the court's decision to halt the investigation and seek a written reply from the FIA by August 13.