FBR told to take steps to check fake sales tax refund claims

A parliamentary panel has directed Federal Board of Revenue (FBR) to take concrete steps to check fake sales tax refund claims. The subcommittee of Public Accounts Committee (PAC) met here on Monday under the chairmanship of Sardar Ashiq Hussian Gopang to discuss audit paras of the FBR for 2009-10. Chairman FBR Dr Mohammad Irshad informed the panel that the tax collecting authorities are making all possible measures to check fake tax refund claims. He said that so far his department has paid refunds to the tune of Rs 67 billion.
Member Committee Rashid Godil asked the chairman to explain if the entity is able enough to check 5 per cent fake refunds claims and what actions the authority has taken to improve the situation. He added if the FBR has taken corrective measures, the committee would not have been dealing with the audit paras of 2009-10. Responding to Rashid Godil's query, the chairman FBR said that the department is making all-out efforts to stop such practices, but due to the court cases and other inevitable circumstances, delays are caused.
The audit officials informed the committee that during audit of 2009-10, irregularities to the tune of Rs 59.88 billion were unearthed. The panel directed the FBR officials to seriously take the departmental audit committees (DACs) and don't appear before the PAC in future without thoroughly discussing audit relating matters. The chairman committee observed that unfortunately at national, provincial and district levels, the departments have not adopted the audit culture. He added that due to the efforts of the PAC, now the departments are gradually accustoming to the audit.
The committee ordered the principal accounting officers (PAOs) to seriously take PAC meetings and compel attached departments to clear audit objections, otherwise, the committee has powers to issue arrest warrants against those officials who do not follow the committee orders.