PM constitutes inquiry team for sales tax fraud investigation

December 12, 2024 (MLN): To investigate the ongoing sales tax fraud cases, Prime Minister Shehbaz Sharif has constituted an inquiry team with immediate effect, according to the notification issued by the Prime Minister's Office.

The focus will be on examining the role of public officials, identifying policy loopholes, and uncovering the involvement of various entities in perpetrating these fraudulent activities.

The Prime Minister's Office outlined the Terms of Reference (ToRs) for the newly formed team, which is tasked with conducting a thorough investigation into the matter.

To examine the IB reports on sales tax fraud cases and analyze the financial and accounting transactions of these cases.

This analysis will focus on the connivance of public officials and PRAL employees with the perpetrators and abettors of sales tax fraud.

To ascertain FTO's role and its decisions impacting legal proceedings of a tax fraud case and holding press conference/ media talks, the notice added.

The objective is to study the loopholes in policy, automation, and enforcement levels that lead to the commission of sales tax fraud.

This includes focusing on inadmissible input adjustments and fake/flying invoices. Additionally, the goal is to propose measures to plug these loopholes.

To recommend a way forward, clearly specify the actions required to be taken, including departmental and penal action, against all those involved to curb the commission of such tax frauds.

 Additionally, address the need to intercept the maladministration by officers and officials of the FBR, as per the notice issued.

To recommend improvement in ST-related modules of FBR, to overcome current automation gaps identified in investigations so far which led to frequent scams and loss of colossal amount of government revenue.

Moreover, the team will look into any additional issues that may be relevant to the investigation and the prevention of future fraud.

The notice further stated that the Inquiry Team, which may include additional members as needed, has been given 30 days to submit its report.

The FBR has been directed to notify the team and provide all necessary secretarial support.

The inquiry team consists of notable members, including Bilal A. Kayani, MNA; Mr. Tanvir Akhtar Malik, Member FBR; Ghazi Akhtar Khan; Dr. Fareed Zafar; a representative from the Intelligence Bureau (IB); a representative from the Financial Monitoring Unit (FMU); Munir Masood Marath, Director/ADG (North) FIA, and Mr. Amir Abbas Khan, Director I&I-IR HQ.

The inquiry team will be convened by Musadiq M. Malik, Federal Minister.

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