PM Shehbaz forms inquiry team to investigate sales tax fraud cases

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif has formed an inquiry team to investigate ongoing sales tax fraud cases, according to a notification from the Prime Minister’s Office.

The team’s primary objective is to assess the involvement of public officials, identify policy gaps, and uncover the roles of various entities in the fraudulent activities.

The Terms of Reference (ToRs) for the inquiry team outline its responsibilities, including a detailed examination of Intelligence Bureau (IB) reports on sales tax fraud and a review of financial and accounting transactions related to these cases.

The investigation will focus on the collaboration between public officials and employees of the Pakistan Revenue Automation Limited (PRAL) with those responsible for tax fraud.

The inquiry will also explore the role of the Federal Tax Ombudsman (FTO) and evaluate its decisions affecting legal proceedings in tax fraud cases, including any media statements or press conferences held.

The investigation aims to pinpoint the weaknesses in policy, automation, and enforcement mechanisms that allow for such fraud to occur, with particular attention given to inadmissible input adjustments and fraudulent invoices.

The team is tasked with proposing solutions to close these gaps and prevent future fraud.

Additionally, the inquiry will recommend necessary actions, including departmental and legal measures, to hold those involved accountable. It will also focus on addressing maladministration within the Federal Board of Revenue (FBR) and its officers, as outlined in the notice.

The team will suggest improvements to the FBR’s sales tax modules to address identified automation issues that have facilitated repeated scams and significant revenue losses. Furthermore, the team will investigate any other relevant factors that could prevent future fraud.

The inquiry team, which may expand as needed, has 30 days to submit its findings. The FBR has been instructed to provide full support to the team, including necessary secretarial assistance.

The team’s members include Bilal A. Kayani, MNA; Tanvir Akhtar Malik, FBR Member; Ghazi Akhtar Khan; Dr. Fareed Zafar; representatives from the Intelligence Bureau (IB) and the Financial Monitoring Unit (FMU); Munir Masood Marath, Director/ADG (North) FIA; and Amir Abbas Khan, Director I&I-IR HQ. The team will be led by Musadiq M. Malik, Federal Minister.

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