LAHORE - The Federal Tax Ombudsman (FTO) Secretariat has detected a significant tax fraud involving approximately Rs529 billion in sales tax. It was disclosed by Dr Waqar Ch Arain, Advisor to the FTO, during an awareness session with business community, here on Sunday. He said the scam was brought to the notice of FTO Dr Asif Mahmood Jah who deputed Almas Ali Jovinda, Advisor Legal for thorough investigation which revealed startling disclosures.
According to concrete evidence, certain FBR officials allegedly collaborated with fraudulent companies to manipulate tax records, paving the way to receive unwarranted tax refunds. The fraudulent practices reportedly involved falsifying invoices, inflating input taxes, and issuing refunds for sales that never occurred. These tactics facilitated for an extensive siphoning of public funds under the guise of legitimate tax refunds.
Almas Ali Jovinda investigation sheds light on deep-rooted issues within the tax collection system, which have long enabled such scams. The report points out a lack of stringent oversight and effective auditing processes that allowed this fraud to persist over time. Following this revelation, FTO Dr Asif Mahmood Jah, has recommended FBR Chairman for an inquiry into the matter for taking strict action against those involved. The scandal underscores the need for reform in Pakistan’s tax administration system to restore public confidence and prevent future financial misconduct.