The Pakistan Information Commission (PIC) has directed the Federal Board of Revenue (FBR) to disclose detailed information regarding tax evasion investigations involving prominent enterprises.
This directive follows an appeal filed after the FBR failed to provide the requested information under the Right of Access to Information Act, 2017.
In a press release, the PIC stated that the appellant, Azmat Khan, had sought details on an inquiry conducted by the FBR into the tax practices of three companies: M/s. AKK Enterprises (SMC-PVT.) Limited, M/s. Perfect Craft (SMC-PVT.) Limited, and M/s. Zayyan Trading Co., Karachi. Khan’s request specifically sought information regarding the inquiry’s findings, actions taken against the companies or individuals involved, and the rationale behind any inaction.
The request included several pointed questions:
1. Whether FIRs and criminal proceedings had been initiated against Junaid Marisori.
2. Outcomes of inquiries under the Anti-Money Laundering (AML) Act, 2010.
3. Reasons for the non-registration of M/s. Zayyan Trading Co. with the Sales Tax Department despite significant purchases.
4. Recovery of any tax amounts from the implicated entities.
The FBR, represented by Deputy Director Syed Shabih Haider, sought exemption from disclosure, citing sections of the Right of Access to Information Act, 2017, and the Income Tax Ordinance, 2001, which protect certain confidential records. The FBR argued that disclosing the requested information could breach confidentiality and was prosecutable under existing tax laws.
However, the commission found that the requested information did not fall under exempt categories. The PIC emphasized that the information pertains to tax evasion, which is a public matter, not a personal privacy issue. The commission highlighted that proactive disclosure of such information is mandated under the Right of Access to Information Act, 2017, to ensure transparency and accountability in government operations.
“The matter of tax evasion is not pertaining to personal privacy but it is an offense under the law which requires to be investigated and prosecuted in accordance with the law,” stated the commission’s order.
The PIC’s decision underscores the government’s commitment to transparency, good governance, and public participation in state affairs. The commission noted that the FBR is legally obligated to disclose the information proactively and that the provisions cited by the FBR to withhold the information were not applicable in this case.
As a result, the PIC has ordered the Chairman FBR and Secretary Revenue Division to provide the requested information to the appellant and the commission within ten days. Additionally, the commission has endorsed a copy of the order to the Secretary of the Prime Minister of Pakistan, in view of the government’s recent efforts to curb leakages and enhance revenue collection.
This directive is a significant step towards ensuring transparency in tax administration and addressing public concerns about accountability in government operations. By mandating the disclosure of tax evasion investigation details, the PIC aims to promote a culture of openness and responsiveness in Pakistan’s public institutions.
The public and various stakeholders await the FBR’s compliance with the PIC’s order, which is expected to shed light on the tax practices of the involved companies and the effectiveness of the FBR’s enforcement actions. This move is likely to reinforce public trust in the mechanisms for addressing tax evasion and contribute to broader efforts to improve tax compliance and revenue collection in Pakistan.