Rs 52 billion revenue loss detected in FBR field formations audit

The Directorate General, Internal Audit (Inland Revenue), after auditing different field formations of the Federal Board of Revenue, detected a loss of revenue amounting to over Rs 52.070 billion during the financial year 2010-11, out of which it recovered Rs 19.888 billion.
This was stated in the Annual Report submitted to the Chairman of the Federal Board of Revenue by the Director General, Internal Audit (Inland Revenue), sources in the Board told Business Recorder here on Monday. Sources said that the Directorate General, Internal Audit (Inland Revenue) audited 375 units of the FBR field formations and detected loss of revenue amounting to Rs 52070.346 million during financial year 2010-11, out of which Rs 19,888.872 million had been retrieved.
They said that the retrieval of loss was Rs 3412.170 (M) from Northern Region, Islamabad, Rs 3326.213 (M) from Central Region, Lahore, and Rs 13150.489 (M) from Southern Region, Karachi. The Northern Region, Islamabad, has jurisdiction over Rawalpindi/ Islamabad, Peshawar and Abbottabad. The Central Region, Lahore, holds jurisdiction over Lahore, Gujranwala, Faisalabad and Multan, whereas Southern Region, Karachi, has the jurisdiction over Karachi, Hyderabad, Sukkur and Quetta.
Additional tax, amounting to Rs 1365.777 (M) was charged on account of non-deduction of taxes, Rs 543.747 (M) on account of non-payment of advance tax, Rs 16.549 (M) on account of non-payment of admitted tax liability along with the return, and Rs 550.920 (M) on account of non-payment of tax levied. All these figures showed marvellous percentage increase over the immediately preceding year.
The loss of revenue had been detected from the defaulters of withholding tax provisions at Rs 7748.942 (M). Loss of revenue on account of non-charging of Workers' Welfare Fund of Rs 861.347 (M) was also detected. Besides, loss of revenue of millions of rupees was also detected on account of miscellaneous irregularities such as wrong calculation of tax, arrears demand not brought forward, wrong claim of carry-forward losses, wrong/excess refund adjustments, excess credit of tax, etc.
Through inspection of a single particular case, loss of Rs 5805.403 (M) had been detected on account of short payment of admitted tax liability. Similarly, in the case of another taxpayer, loss of revenue of Rs 413.920 (M) was detected on the above-mentioned issues. Loss of revenue of Rs 841.733 (M) was also detected in a single case on account of excess claim of amortisation of intangible assets.
Internal Audit (Expenditure) of the various Divisions/offices was also conducted and various irregularities/discrepancies were pointed out which were removed by the concerned authorities. The Annual Report of the Directorate General reflects comparative analysis of loss of revenue detected and retrieved in respect of inspection and audit of corporate as well as non-corporate cases for the year 2010-11 in comparison with 2009-10.
Sources said that the Northern Region, Islamabad, and the Southern Region, Karachi, had shown landmark progress as their revenue retrieved during the year 2010-11 was 3.53 times and 1.13 times respectively higher than the revenue retrieved during Financial Year 2009-10. The improvement in all areas of work clearly showed that concerted efforts were made by the Directorate General and its subordinate offices to improve the internal control of the organisation.