Rs238.421bn mega sales tax fraud: FBR sacks officer over failure to conduct probe

ISLAMABAD: The Federal Board of Revenue (FBR) has dismissed from services an Inland Revenue officer (Investigation Officer), who failed to conduct an accurate investigation into a Mega Sales Tax Fraud involving Rs238.421 billion.

In this regard, the FBR issued a notification on Monday.

According to the notification, FIR No.01 of 2024 was registered by the Regional Tax Office (RTO-I), Karachi, on March 26, 2024, against Awais Bhutta of M/s New Metro Foodwear Co., Karachi, and 12 other co-accused with an allegation of tax fraud amounting to Rs238.421 billion.

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On receipt of an intelligence report from Prime Minister’s Office regarding serious flaws in the investigation on part of Investigation Officer (Altaf Hussain Khurho), disciplinary proceedings under Civil Servants (Efficiency and Discipline) Rules, 2020 were initiated against Altaf Hussain Khurho, Senior Auditor (Time Scale BS-17), Regional Tax Office-I, Karachi vide charge sheet and statement of allegations.

Aftab Alam, (IRS/ BS-20), Director General (OPS), Directorate General of International Taxes Operations, FBR, was appointed as Inquiry Officer who submitted an inquiry report dated 17.07.2025 concluding that the charge of “inefficiency” stands established and recommended a minor penalty of “withholding of promotion for a period of one year” upon the accused officer.

Based on the inquiry report, a show-cause notice dated 11.08.2025 was served upon the accused. The accused submitted a reply in response to the show cause notice and denied the allegations/charges levelled against him.

During the course of the hearing, the departmental representative (DR) informed that the accused officer was appointed as an Investigation Officer in a Mega Sales Tax Fraud. He showed serious negligence and failed to take various steps that were required for an efficient investigation process.

The DR also confirmed that illegal/fake/input of Rs197,274,780/- was received by six beneficiaries, out of which an amount of Rs117,413,016/- has been recovered from the beneficiaries, while the remaining amount of Rs79,861,764/- is still recoverable from them.

The accused officer stated that he discharged the role of an Investigation Officer, as per his ability, and the responsibility of effective prosecution of the case before the Court rested with the Legal Prosecutor and not the Investigation Officer.

The accused officer also informed that CNIC, NTN numbers, and addresses of the accused persons nominated in the FIR were not available, and two CNICs were blocked from the NADRA after his hectic efforts. The accused officer further stated that no favourable treatment was given to the persons nominated in the FIR, nor any responsibility thereof can be attributed to him.

Copyright Business Recorder, 2025