Over Rs 127 million losses detected in tax collection

The Federal Board of Revenue (FBR) has detected serious discrepancies in collection of additional tax and the Workers Welfare Fund (WWF) by the tax officials, pertaining to past years, causing huge revenue loss to the national exchequer. Sources told Business Recorder here on Saturday that the issue of the WWF collection has been highlighted in the report of the Directorate General on Internal Audit Inland Revenue for 2009-2010.
The revenue loss to the WWF is related to past years, but the directorate has made these detections in 2009-2010 and made part of its annual report. According to the report, the audit during the year 2009-10 led to detection of a number of discrepancies in the charging of WWF under section 4 of Workers Welfare Ordinance, 1971 resulting in detection of loss of revenue under this head at Rs 127.321 million.
The data showed that the loss of revenue detected by the department covering areas of Northern Region area, Central Region and Southern Region respectively on account of miscellaneous irregularities in addition to detection of loss of revenue on account of non- short-levy of additional taxes and WWF.
Apart from additional taxes and WWF, major contribution of loss of revenue detected by the audit authorities came from miscellaneous irregularities which included wrong calculation of taxes; arrears demand not brought forward and arrears demand deleted without obtaining incorporation certificate, etc.
During the year 2009-10 total loss of revenue was detected at Rs 26,053.260 million on this account as compared with the detection of loss for the year 2008-09 at Rs 19,835.643 million. The Region-wise data presented above shows that Southern Region detected loss of revenue of Rs 12,261.922 million under this head. Similarly, the Central Region also made a considerable contribution in detection of loss of revenue at Rs 11,857.690 (M) on account of miscellaneous irregularities.
The summary of total loss of revenue of Rs 28,191.812 million for the year 2009-10 detected by the audit authorities under the head revenue audit as compared to immediately preceding year ie 2008-09 where loss of revenue under all the heads of revenue audit was detected at Rs 20,787.846 million. The increase in detection of loss of revenue from audit function as indicated above clearly reflects the remarkable performance of the Directorate General of Internal Audit.