Disciplinary inquiry finds unauthorised factory visit proved, while corruption allegation remains unsubstantiated.
ISLAMABAD, August 7, 2026: The Federal Board of Revenue (FBR) has imposed the major penalty of compulsory retirement on a senior auditor of the Inland Revenue Service after disciplinary proceedings found him guilty of participating in an unauthorised visit to a factory in Lahore.
According to an official notification, disciplinary proceedings were initiated against Hafiz Muhammad Azam, Senior Auditor (Time Scale-17), Corporate Tax Office (CTO), Lahore, along with two other officials. The three officers were suspended and served charge sheets on December 10, 2025, over allegations of inefficiency, misconduct and corruption under the Civil Servants (Efficiency & Discipline) Rules, 2020.
Inquiry Recommended Dismissal
Ms Attiya Ali Khan, Commissioner Inland Revenue, was appointed as the Inquiry Officer and submitted her report on April 3, 2026.
The inquiry concluded that all three charges had been established against the officials and recommended the major penalty of dismissal from service.
Following the inquiry report, the FBR issued show-cause notices on April 29, 2026. The accused officials submitted written replies and requested personal hearings before the competent authority.
Hearing Before Competent Authority
The Member (Administration/HR), acting as the competent authority, heard the officials on July 16, 2026.
During the proceedings, the departmental representative stated that the charge relating to an unauthorised and illegal visit to the premises of M/s Versal Industry (SMC-Private) Limited on October 29, 2025, had been established during the inquiry.
Senior Auditor Denied Allegations
In his defence, Hafiz Muhammad Azam denied the allegations and maintained that he had been travelling with a Havaldar to attend a funeral near Ferozepur Road after leaving the office.
He stated that another employee requested a lift to the factory premises, where an authorised raid by the Directorate of Intelligence and Investigation (Inland Revenue) was already in progress.
According to his explanation, he merely stopped outside the factory gate to drop the employee, did not enter the premises and played no role in the raid. He also argued that he had no jurisdiction over the factory because he was posted in Zone-II rather than Zone-III.
FBR Rejects Defence
The competent authority found the explanation unconvincing after reviewing reports submitted by the Deputy Director of the Directorate of Intelligence and Investigation (Inland Revenue), who led the authorised raid, and the Deputy Commissioner Inland Revenue having jurisdiction over the factory.
The authority also examined a computerised death certificate produced by the official and concluded that his claim of attending a funeral during office hours was inconsistent with the record. Although the death occurred on October 29, 2025, the funeral and burial took place the following day.
In addition, the Member (Administration/HR) contacted the Deputy Director of Intelligence and Investigation on August 5, 2026, who confirmed that Hafiz Muhammad Azam was present outside the factory’s main gate while the other two accused officials were found inside the premises during the raid.
Compulsory Retirement Instead of Dismissal
The FBR noted that the allegation of accepting illegal gratification, which formed the basis of the corruption charge, could not be substantiated.
However, the authority held that the unauthorised visit to the factory and the submission of incorrect and misleading statements had been proved during the disciplinary proceedings.
Taking these findings into account, the competent authority concluded that dismissal from service was not warranted because the senior auditor’s presence inside the factory premises could not be established.
Instead, the FBR imposed the lesser major penalty of compulsory retirement under Rule 4(3)(c) of the Civil Servants (Efficiency & Discipline) Rules, 2020, with immediate effect.
Right to Appeal
The notification further provides that the suspension period from October 30, 2025, until the date of the order will be treated as leave admissible under the Revised Leave Rules, 1980.
The FBR has also informed Hafiz Muhammad Azam that he may file an appeal before the competent appellate authority under the Civil Servants (Appeal) Rules, 1977 within 30 days of receiving the notification.