ISLAMABAD: The Federal Tax Ombudsman (FTO) has unearthed a unique case of tax fraud involving cyber criminals, who misused the computerised national identity card number (CNIC) of a junior clerk of Sindh to file fake income tax returns and created tax liability against a fake non-existent immovable property.
“It is highly surprising to note that the Pakistan Revenue Automation Limited (PRAL) did not provide the cell no and email address who registered the complainant which is very necessary to identify the cyber-criminal,” the FTO order added.
The FTO’s order issued on Thursday revealed that the complaint was filed against compulsory income tax registration in 2019 without any intimation, filing of fake income tax returns for tax years, 2014 and 2015 on March 27, 2021 on behalf of the complainant misusing his CNIC and ID declaring fake income from salary of Rs6,500,000.
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The FTO order said that the illegal income tax registration, filing of fake income tax returns for tax years 2014 and 2015 creating tax liability of Rs63,037,923 on 07.08.2024 against a fake non-existent immovable property, and enforcing recovery through the illegal attachment of the salary account of the complainant causing administrative excesses tantamount to maladministration.
The FTO order further stated that the complainant is presently a junior clerk in the S&GAD & Coordination Department, Government of Sindh. Some cyber criminals registered him in income tax by misusing his CNIC and subsequently, filed fake income tax returns for tax years 2014 and 2015 on March 27, 2021.
During tax years 2014 and 2015, he was a driver, and as per his pay slips, his monthly gross salary was around Rs20,000 which was much below prescribed taxable income limit for tax years 2014 and 2015.
Hence, the complainant was not required to file income tax returns for tax years 2014 and 2015 when there was no evidence of additional other heads of income. Thus, it appears that the CNIC of the complainant has been misused for registration and filing of income tax returns for tax years 2014 and 2015. Moreover, the tax department did a gross injustice when the tax official issued an ex parte assessment order u/s 122(5A) of the Income Tax Ordinance by making an addition of Rs180,108,350 against a fake nonexistent immovable property creating tax liability of Rs63,037,923. Thereafter, the department attached his two bank accounts including the complainant’s salary account at Karachi making the living of his family members consisting of five persons including three innocent children miserable.
The FTO has recommended the FBR to direct the Commissioner-IR, Zone-i, RTO-II Karachi to detach at least the salary account of the complainant immediately as no evidence of involvement of the complainant was so far found in this fraudulent act and report compliance within 15 days.
Director General, Intelligence and Investigation (I&I) Inland Revenue (IR) to initiate Fact Finding Inquiry by probing cell number and IP address to dig out the cyber criminals for appropriate conviction under the law.
The FTO has further directed the Director General I & I IR to seek access to IP data more than one-year-old as available to other agencies designated under IFTA (The Investigation for Fair Trial Act, 2013) from the competent Authority to overcome the technical limitation for necessary investigation, especially in tax fraud cases.
The FTO has further directed the Member (Ops)/DG IT-DT, FBR to inquire into the fake online registration of the complainant u/s 181 by an Officer without any name for necessary correction to avoid identical tax fraud in the future.
The FTO has instructed Commissioner Zone-l, RTO-II Karachi not to pursue recovery proceedings and revisit the ex-parte assessment order dated August 7, 2024 under section 122A of the Ordinance once the investigation by the DG I & I is complete and the complainant was not found involved in this criminal act, the FTO added.
Copyright Business Recorder, 2025
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