Biggest tax scam: FTO recommendation still remains Unimplemented

Despite confirmation by Lahore High Court (LHC), a key recommendation issued by the Federal Tax Ombudsman (FTO) remains unimplemented wherein the FTO ordered the FBR to launch an investigation why the Directorate of Investigation & Intelligence (I&I) failed to file an appeal against the light sentences awarded to mastermind of biggest tax scam.
It is reliably learnt that taxpayer preferred a constitutional petition through Waheed Shahzad Butt, Advocate, challenging the action of the FBR wing "I&I" to file representation before the President against the order passed by the FTO. The order passed by the President in favour of the FBR and against the FTO was reversed by the LHC while deciding petition against the President of Pakistan.
Sources told this correspondent that following recommendations were issued by the FTO to FBR to (i) direct the Chief CIR to refund the amount deposited by complainant, under protest (ii) direct the CIR to cancel the Order (iii) conduct an enquiry to identify if any PRAL officials were involved in the scheme and to proceed against the defaulters (iv) to launch an investigation into the circumstances why the officials of the Directorate of I&I did not file an appeal against the apparently light sentences awarded to those who seemingly masterminded the scam.
LHC order states "A notice was issued by the respondent (Intelligence & Investigation) by which the petitioner was confronted with certain amounts which were claimed as input tax. The said amounts were deposited under protest by the petitioner. During December, a news was published in the daily Business Recorder which reported that a tax fraud scam had been busted by the I&I and in which the officials of CREST were involved. Be that as it may, the petitioner requested for the return of amounts deposited under protest. However, the respondents set in motion another proceeding against the petitioner and a show cause notice was issued for the payment of an alleged penalty in respect of the amount of sales tax which had already been deposited by the petitioner. From a perusal of the order passed by the FTO as well as the findings rendered by the President on representation filed by the respondents, it is clear that the recommendations made by the FTO was done after due regard for the entire facts and circumstances as well as by taking into account the legal proposition that no recovery of tax could be made otherwise by due process of law and by following procedural formalities. It is indeed highhandedness on the part of the respondents to have transgressed the petitioner into submissions and to have compelled him to imburse a substantial amount purportedly by way of sales tax due from the petitioner. In view of the above, this petition is allowed and the order passed by the President is set aside with the result of the findings rendered by the FTO, shall stand revived.
The case was taken up for implementation of recommendations with the concerned RTO. The department informed that CPLA has been filed in the Lahore High Court vide No. 82/A/2018 and the matter has become sub judice: the FTO letter added.