FBR Council to decide tax fraud cases on July 12

The Federal Board of Revenue has decided to convene a meeting of the Board-in-Council to decide the tax fraud cases involving sales tax and federal excise pending with the Directorate General of Customs Intelligence. Sources told Business Recorder on Thursday that the FBR will convene a meeting of the Board-in-Council on July 12, 2011 to take decision about the pending cases of sales tax frauds detected by the Directorate General of Customs Intelligence.
The customs intelligence had detected tax frauds in billions of rupees of sales tax in Karachi and Lahore. After creation of the new intelligence agency of Inland Revenue, the powers and jurisdiction of such cases framed by the Customs intelligence would be discussed in the meeting. In this connection, the Director General Customs Intelligence FBR would also participate in the Board-in-Council meeting.
Prior to integration of domestic taxes, Directorate General Intelligence and Investigation FBR was looking after the sales tax and federal excise cases. After the integration of taxes under the nomenclature of Inland Revenue, a separate Directorate General, Intelligence and Investigation Inland Revenue has been created with the mandate to investigate cases related to the three domestic taxes. Therefore, section 30A of the Sales Tax Act, 1990 and section 29 of the Federal Excise Act 2005 were amended through Finance Act 2011.
Sources said that the FBR may also approve the proposal of the FBR Member Legal to enhance the legal advisor retainership fee from Rs 40,000 to Rs 100,000. The Board-in-Council would also discuss issues of stuck up arrears of Hubco; report of FBR/Pakistan Revenue Automation Limited (PRAL) steering committee on Pral's and its initiatives in FBR; refund claims of Attock Cement Pakistan Limited; demand for enhancement of legal advisor retainership fee from Rs 40,000 to Rs 100,000; cases of sales tax & federal excise pending with DG (I & I), FBR and actionable points of the monitoring & implementation committee of Public Accounts Committee on the FBR.