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FBR detects unlawful issuance of refunds worth Rs724m

FBR detects unlawful issuance of refunds worth Rs724m

ISLAMABAD: Federal Board of Revenue (FBR) has detected cases of unlawful issuance of refunds without fulfilling of formalities amounting to Rs274 million by three field formations including Corporate Regional Tax Office Lahore, Large Taxpayer Unit II (LTU) Karachi and Regional Tax Office (RTO) Hyderabad.

Federal Board of Revenue has directed field formations to recover the revenue and fix responsibility on the persons involved and furnish comprehensive report to FBR.

According to details M/s New Shalimar Steel Industries Lahore National Tax Number (0786554-6) claimed refund of Rs31.84 million and department adjusted the same without passing the refund adjustment order and without credit verification of tax payments which resulted in revenue loss of Rs10 million.

Likewise M/s Popular Spinning Mills Hyderabad National Tax Number (1448911) claimed previous years refund and adjusted the same into current year tax. The adjustment was irregular because the refund was allowed without determining the claim and verification by the department, which resulted in irregular adjustment of Rs. 207.21 million.

In another case M/s Lakhra Coal Development Co. National Tax number (0710948), under the Large Tax Payer Unit II Karachi claimed previous years refund and adjusted the same into current year tax. The adjustment was irregular because the refund was allowed without determining the claim and verification by the LTU II Karachi and resulted in irregular adjustment of Rs56.74 million.