KCCI points out lacunae: FBR asked to bifurcate list of tax payers

Karachi Chamber of Commerce and Industry's Acting President Younus Muhammad Bashir has proposed Federal Board of Revenue to bifurcate the list of tax payers to whom notices were served under Section 8-A (37) and to segregate the tax-payer who strictly abided the sales tax act while implementing section 73 and the real culprits/dishonest elements who had received that money which was mandatorily to be deposited in the national exchequer.
He made his proposal in a letter to the FBR Chairman in larger interest of the nation and to help the government in apprehending the unscrupulous elements for looting the national exchequer. He voiced that chambers and associations did not support that small percentage of businessmen and would fully cooperate with FBR.
He stated that tax payers who had duly discharged their tax liability might be served with show cause notice if necessary so that they furnished the required documents to satisfy the Collector accordingly. To restore the confidence in FBR, he further requested that till the time this list was bifurcated, the FIA be instructed not to initiative any further investigation process.
Younus Muhammad Bashir has drawn his attention towards lacunas in the laws which let unscrupulous elements do away with those kinds of fraudulent activities. Referring the meeting of KCCI delegation with FBR Chairman on March 10, at Customs House Karachi wherein prolonged and threadbare discussions were made, he stated that as per the advice of FBR Chairman "we have tried to understand the problem with the team of legal advisors and members with legal know how and also with number of people served with notices."
He said that putting the matter in strict legal framework, notices which had been served under Section 8-A (37) were legally alright/fit but evaluating it in light of best business practices and sales tax act, the serving of notices and initiation of FIRs to the class of tax payers who strictly abided by the act, wherein section 73 has been implemented in letter and spirit, where banking instrument has been utilised for the transaction of funds and above all on the day of transaction the concerned party was not among the blacklisted tax-payers enlisted by FBR.
Furthermore, he said it was also the opinion of legal advisors that cheques which were issued in favour of the suppliers had been duly encashed into the accounts of the recipients that left no legal cause for initiation of notice and what to talk about the FIR?
He said that in Chamber's point of view after going through this exercise, all those who matter, "we at KCCI are of the firm opinion that 8-A can be termed as a "bad law" which fixes the liability of the payer and recipient on equal grounds. And on the very pretext many of the aggrieved tax-payers were granted stay by different courts in the first hearing. Therefore, in larger interest of the nation and to help the government in apprehending the unscrupulous elements for looting the national exchequer, KCCI would like to propose that this subject list may be divided into two portions.
First of those who have discharged their liabilities of sales tax strictly abiding by section 73 of the sales tax act, and of the people who have received the money which mandatorily was to be deposited in the national exchequer who have not done so are the real culprits. He urged the FBR Chairman to revisit said cases in the light of the experience and the positive contribution by chambers and associations. He also appealed to take an immediate decision in light of Chamber's proposals so that justice prevailed and those who abided by the law were saved from this unnecessary harassment.