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ISLAMABAD: Multan Tax Bar Association (MTBA) has accused Pakistan Revenue Automation Limited (PRAL) and the IT Wing of the Federal Board of Revenue for committing alleged malpractices of facilitating fake/ flying sales tax invoices.

In this regard, the MTBA has written a letter to FBR Chairman for taking action against the involved officers.

According to the letter of the MTPA, the association has levelled these serious allegations against the said departments.

MTBA asks ATIR chairman to transfer urgent cases back to Multan Bench

An immediate attention of FBR Chairman is needed towards a serious issue concerning the malpractice within the Pakistan Revenue Automation Limited (PRAL) and FBR’s IT Wing. These departments are allegedly involved in the unethical unlocking of provisional sales tax returns for registered persons, it alleged.

This unethical service benefits fraudulent individuals engaged in creating fake and flying invoices, enabled through the collusion of PRAL and IT Wing personnel, it accused.

Federal Tax Ombudsman, Dr Asif Mahmood Jah has already highlighted this collusion between official departments and tax fraudsters in his findings in Complaint No. 2800/KHI/ST/2024, dated October 3, 2024, titled “Mr. Muhammad Sharif Vs. The Secretary, Revenue Division, Islamabad.”

Despite these findings, corruption within these departments remains evident, and it appears the measures to control it have been insufficient. Bonafide taxpayers continue to face significant hardship exacerbated by the operations and implications of SRO 350 (1)/ 2024. It is disheartening to witness that provisional returns are being unlocked, allowing the alteration of invoices to suit illicit objectives before resubmission.

FBR Chairman should take decisive action to eliminate this malpractice and restore integrity within the PRAL and IT Wing. It is imperative that the department should implements strict controls and oversight to prevent any further exploitation of the system by corrupt individuals, the association further alleged.

FBR should treat this matter with the urgency and seriousness it deserves to protect the interests of honest taxpayers and uphold the credibility of the FBR, the association added.

Copyright Business Recorder, 2025

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Zohra Bukhsh Larik Mar 04, 2025 08:43am
FBR has been invaded by corrupt officers and it is biggest hurdle in tax collection
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