KCCI questions validity of tax regulator’s figures

Says body loses most cases, spends uselessly in claims

KARACHI: Federal Board of Revenue’s (FBR) unpopularity with the business community knows no bounds as in the latest criticism Karachi Chamber of Commerce and Industry (KCCI) President Younus Muhammad Bashir has said that the regulator has not been accurately filing tax claims and presents an incorrect, exaggerated figure.

“No recoveries were actually taking place as majority of the decisions were being given against the FBR by the income tax appellate tribunal in appeal cases,” he added in a statement issued on Friday.

Bashir, while referring to figures presented by the audit office before the Public Accounts Committee (PAC), said that it was a matter of concern that out of 751 appeals, only 80 were decided in favor of the FBR while the remaining 671 cases (90%) were decided against it by the income tax appellate tribunal.

He said that the FBR has been using such tactics for a while as the KCCI has received dozens of complaints pertaining to false cases during the past couple of years. “Although the issue has been taken up with the board from time-to-time and the same has also been highlighted in the media on various occasions, but to no avail.”

“Nothing much is being recovered as FBR loses majority of the cases and whatever amount they succeed in recovering after winning a few cases, is probably utilised on lawyer’s fee ,” he added.

He added that FBR files false and baseless cases with an intention to harass the taxpayers for personal benefits.

Referring to FBR Chairman Tariq Bajwa’s remarks, the KCCI chief stated that if a lawyer of FBR’s panel was receiving around Rs30,000 to defend a false and purely futile case, it means that the board has to pay a hefty amount of Rs22.5 million to settle lawyers’ fee for dealing with 751 appeals.

“Instead of filing strong cases against tax evaders which can be easily defended, FBR has been creating problems for taxpayers by filing false cases which result in causing serious losses to the national exchequer,” he added.

Bashir stated that there was nothing wrong with the legal system but it was largely being misused by corrupt elements in the FBR in order to benefit from the situation by showing misleading recoverie.

Published in The Express Tribune, October 10^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.