Islamabad, February 16, 2024 – The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to audit all fake transactions and taxpayers data.
The FTO taken a decisive step in response to a complaint filed by a Deputy Secretary in the Ministry of Law and Justice, directing the Federal Board of Revenue (FBR) to conduct a thorough investigation into thousands of purported fake entries associated with the complainant’s name in the Regional Tax Office (RTO) Islamabad.
The FTO has also ordered an IT audit of all transactions linked to these entries.
According to FTO Annual Report, the complainant, who had been diligently filing income tax returns, specifically declaring income from salary, was startled to discover thousands of unknown entries within his tax profile. These entries, totaling approximately 23,800, included import declarations and withholding transactions that were not associated with the complainant’s actual financial activities.
In light of these alarming findings, the FTO has disposed of the complaint and highlighted the need for a comprehensive investigation into what appears to be a case of unauthorized entries linked to a test National Tax Number (NTN) allotted to the complainant. The FTO’s observation pointed out negligence, inattention, incompetence, and ineptitude on the part of FBR officers, particularly the Pakistan Revenue Automation Limited (PRAL), categorizing it as maladministration.
The FTO’s directive to the FBR is clear – issue instructions to the Member (Information Technology) FBR to thoroughly investigate the matter. Furthermore, the FBR is instructed to order an IT audit of all the alleged fake transactions. The Directorate General l&I-IR is tasked with conducting this audit to determine the extent of potential revenue leakage and to assign responsibility to the individuals involved.
The move comes as a crucial step toward maintaining the integrity of the tax system, ensuring transparency, and holding accountable those responsible for any discrepancies. The FBR is expected to comply with the FTO’s directive promptly, with the investigation and IT audit likely to shed light on the origin and purpose of the fake entries.
The outcome of this investigation will not only have implications for the individual complainant but also for the broader tax system’s credibility. Cases of unauthorized entries raise concerns about the effectiveness of existing security measures and the need for enhanced scrutiny to prevent similar incidents in the future.
As the FBR proceeds with the investigation, taxpayers and the public at large will be keenly observing the developments, expecting a thorough and transparent examination of the alleged fake entries. The FTO’s intervention underscores the importance of maintaining the trust of taxpayers in the tax administration system, assuring them that irregularities will be addressed with the utmost seriousness.
