Audit objections settlement: PAC asks FBR to show seriousness

The Public Accounts Committee (PAC) has warned the Federal Board of Revenue that the committee would be forced to approach Prime Minister Syed Yusuf Raza Gilani in case the tax managers continued to show lack of commitment and seriousness in settlement of audit objections raised by the Auditor General of Pakistan (AGP). Sources told Business Recorder here on Tuesday that the National Assembly Secretariat (PAC Wing) has written a letter to the FBR in this regard.
The PAC has categorically informed the FBR that the Prime Minister Gilani would be reported about the attitude of the Board during the committee meetings in case the tax authorities would not improve its performance. The seriousness of the matter is evident from the fact that the PAC has hinted of filing a report to the PM following persistent irresponsible attitude of the FBR during committee meetings. "If the performance of the FBR is not found up to the mark, PAC will be forced to take stringent action and the Prime Minister will be apprised of the situation," PAC warned.
According to the FBR, during the meeting of the Special Committee-III of PAC for examination of Audit reports for the years 2004-05, 2006-07 & 2007-08, the committee was informed by the Auditor General''s Office that the FBR failed to hold meaningful DACs in respect of the Audit paras which resulted in a huge number of these paras to be examined by the Public Accounts Committee.
It was informed that no working paper for the departmental accounts committee (DACs) meetings was supplied to the Audit for the DAC meeting schedule by the FBR on July 6, 2011. Therefore, the verification exercise was carried out on the basis of incomplete documents provided to the Audit. The working papers were not received till submission of the Audit Briefs to the PAC Secretariat on July 18, 2011.
The PAC has, time and again, directed that the principal accounting officers (PAOs) are responsible for holding DAC meetings at least twice a month and Chairman FBR being the PAO, or, if he is not available for any reason, at least a Member of the FBR is supposed to chair the DAC meetings.
The Audit reported that in the DAC meeting called on July 6, 2011, the meetings were chaired by the Chief (Enforcement and Accounting) who is a BPS-20 officer. However, the Audit held the meetings to avoid a total waste of the resources of the Audit the FBR and the Finance Division spent in this exercise. Meetings were held on the preliminary replies prepared by Large Taxpayers'' Units (LTUs), Regional Tax Offices (RTOs), Model Customs Collectorates (MCCs).
This revealed lack of commitment and seriousness on part of the FBR to settle the numerous Audit paras at the DAC level which could reduce the paras to be examined by the Public Accounts Committee. In addition, the lack of preparedness of the officers attending the PAC meetings also results in frustration for the members of PAC, the Audit Officers and the FBR itself, PAC further stated.
The PAC took a strong exception of the issue and decided that if this sort of performance is repeated in future, stern action will be recommended by the PAC. However, in order to proceed further with the examination of these paras conditionally one month''s time has been allowed for discussing all paras in PAC meetings, before which the FBR may hold DACs which should be attended by the Chairman or by the Member (Enforcement and Accounting).
These DAC meetings may be completed within two weeks. It was further decided that if the performance of the FBR is not found up to the mark, PAC will be forced to take stringent action and the Prime Minister will be apprised of the situation, PAC said. It is hoped that the FBR will wake up to the situation and work sincerely with the Audit authorities to settle the Audit paras relating to them. It may also be noted that the Audit Paras will again come up before the PAC in its meeting on August 22-23, 2011 tentatively, the PAC added.