The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to take strict disciplinary/criminal action against the inefficient, delinquent, and corrupt tax officials of FBR, involved in delaying income tax and sales tax refunds.
Sources told Propakistani that the refund-related complaints are the main issue of taxpayers in the Inland Revenue Service (IRS). On the customs side, refund, as well as maladministration regarding anti-smuggling and auctions, is the major issue. Due to timely intervention of the FTO office taxpayers were able to get refunds/duty drawbacks of Rs 8.5 billion in 822 cases during the last year.
According to the sources, the FTO is ensuring speedy disposal of genuine refund claims, while, on the other hand, it is also safeguarding the public exchequer by detecting illegal refund claims through its own motion investigations as well as inspection of the offices of FBR.
Moreover, strict disciplinary action was recommended against the inefficient, delinquent, and corrupt tax officers/officials of FBR. On the one hand, FTO is ensuring speedy disposal of genuine refund claims, while, on the other hand, it is also safeguarding the public exchequer by detecting illegal refund claims through its own motion investigations as well as Inspection of the offices of FBR.
A recent example is the detection of the issuance of an illegal refund amounting to Rs. 123.4 million to a foreign company. FTO proposed strict disciplinary/criminal action against senior officers of FBR involved in the scam, officials added.
