I&I Inland Revenue surrenders services of officials

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ISLAMABAD: The Directorate I&I Inland Revenue has surrendered the services of some of its officials for misue of authority, official documents available with The News revealed.

This has been done with immediate effect after tax authorities identified that they are allegedly misusing their authority despite ban on the issuance of summons against individual taxpayers.


The Directorate General I&I, IR has imposed a ban on the issuance of summons by asking taxpayers to appear before the authorities as it led to corrupt practices.


In case of any solid evidence of tax evasion against any individual or company, the written allegations were sent to them and they were allowed to respond before the authorities concerned even without personal appearance.


Despite ban, the Directorate I&I IR office Karachi Superintendent Syed Nusrat Hussain issued a summon against “The Admiral of Newyork (Pvt) Ltd” under Section 37 of the sales tax act and directed him to submit records till May 30, according to the documents.


When this issue was brought into the notice of I&I IR senior officials, it was established that the superintendent issued summons without prior approval or knowledge of his superiors. Now, disciplinary proceedings have been initiated against the official with immediate effect, it revealed.


Meanwhile, the Director I&I IR Karachi has surrendered the services of six officials for their posting out of the directorate with suitable replacement.


The officials whose services have been surrendered included Zahid Hussain, Inland Revenue audit officer, Muhammad Hanif, Inland Revenue audit officer, Ghulam Hussain Chand, Inland Revenue audit officer, Syed Nusrat Hussain, superintendent, Khurram Asalm, deputy superintendent and Syed Ammer Hussain, deputy superintendent.


Almost all officers were deputed in I&I IR during the tenure of former FBR chairman Mumtaz Haider Rizvi despite observations raised by the I&I officials at that time.


The FBR has already issued orders to refrain from issuing summons to the authorities concerned. An official memorandum of the FBR issued on April 26 revealed that the FBR authorities observed that different sections of I&I IR regional directorates were issuing volley of summons to different individuals. The I&I IR being an Intelligence Agency should be the last one among FBR formations to make resort to this glaring mode of ‘fishing’.


It also states that more reliance on the fact that in cases of sales tax evasion, invoking of Section 37 of the Sales Tax Act, 1990 is a warranting element, and is just an over simplistic excuse for this otherwise avoidable practice.


“By any stretch of imagination, in the guise of its plain reading, any section of law does not allow its practical misuse,” the official memorandum revealed.


It ordered that no plain summons would be issued in any pending investigation / probe. In case of any such issuance is ‘indispensible’ then approval of the director would be obtained through proper channel.


In any pending investigation, all necessary information may be gathered through discreet intelligence operations, third party channels and cross-matching and data analysis. Based on this homework, investigation observation may be formulated and issued to the units / individuals concerned, clearly communicating the discrepancies and acts of evasion observed by the department and consequential inferences drawn thereon.


The taxpayer must be confronted specifically and any information available with the department at the time of issuance of observations but not communicated to the taxpayers concerned in writing, would be construed as in violation of this office order, the official memorandum added.

Courtesy:  The News

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