ISLAMABAD: Federal Board of Revenue (FBR) field formations are involved in issuance of unlawful refunds of Rs 2,097.22 million without fulfilling of required formalities, disclosed FBR report.
According to report, 12 twelve field formations of Federal Board of Revenue have issued refunds to one hundred sixty five (165) taxpayers without adjustment of outstanding liabilities, credit of tax payments given without verification of challans and final tax was incorrectly adjusted against normal tax demand.
The field formations did not take corrective action to recover the unlawful refunds. The irregularities resulted in unlawful issuance of refund amounting to Rs2097.22 million.
It is pertinent to mention here that according to Section 170 of the Income Tax Ordinance, 2001 read with FBR Circular No.5 of 2003, a taxpayer was entitled to a refund if the tax paid was more than the tax due after adjustment of outstanding liabilities.
Federal Board of Revenue took serious notice of the report and directed the field formations to recover the charged amount, finalize the assessment proceedings and furnished comprehensive report in non- responded cases progress. FBR recommended to field formations that internal controls may be made strengthened to avoid recurrences of such irregularities in future.
FBR also directed to head of the field formations to fix responsibilities on the persons who is involved in this scam. On the direction of FBR, field formations has initiated the legal proceedings for charging the tax of Rs2097.22 million. FBR also instructed to the concerned officers to keep eye on such elements who are involved in corruption.