FIA issues 2nd notice to FBR official; FBR moves LHC

ISLAMABAD: Two state departments – Federal Board of Revenue (FBR) and Federal Investigation Agency (FIA) – are confronting and challenging each other’s jurisdiction, and the tussle has now landed in a court of law.

It is state vs. state as one organ of state invokes writ jurisdiction against another and their top notches are just watching without trying to resolve the issue.

Before debating who’s right and who’s wrong, there is a need to ascertain facts. It is the responsibility of the Shehbaz Sharif-led government to fix the responsibility and resolve the issue. The issue has been further triggered and now the FIA has sent out its second notice to the FBR’s Member Inland Revenue Operation Mir Badshah Wazir to appear before the FIA in the matter of tax refunds on the allegation of corruption, kickbacks, and other serious charges.

Earlier, the FBR had filed a petition in the Lahore High Court contending that Section 3 (1) of the FIA Act 1974 provided that an inquiry and investigation under the Act should be conducted in respect of the offences falling under the schedule of the act. Neither the Income Tax Ordinance 2001 nor the Sales Tax Act 1990 are listed in the schedule act. Hence the FIA has no jurisdiction to conduct an inquiry regarding refunds made to large taxpayer companies. Further the counsel contends that Section 216 (1) of the 2001 Ordinance prohibits disclosure of the Department’s record to any public servant as provided in the ordinance. The LHC admitted the petition and notices were issued to all respondents.

Now the question arises how such writ petitions could be filed by the department instead of the accused officers/ summoned officers in their personal capacity.

On the other hand, the FIA has issued another notice to Mir Badshah Khan Wazir to appear before it in the matter of tax refunds to large taxpayer companies by the officials of Large Taxpayer Office (LTO) Lahore.

According to the second notice, it appears that the Member is acquainted with the facts/circumstances of enquiry that is under probe under Federal Investigation Act, 1974 r/w Chapter-XIV of the Code of Criminal Procedure 1898.

The notice said that the noted inquiry is under probe in this agency on the allegations of corruption, kickbacks bribery, corrupt practices, misconduct, illegal approval of tax refunds to large taxpayer companies etc. by the officers/officials of LTO Lahore.

In this regard, the FBR Member was called upon (in person through notices u/s 160 CrPC) but he failed to appear on July 26, 2024. Therefore, the Member is once again called upon to appear in person before the FIA Office, Anti-Corruption Circle, Lahore on August 5 (Monday) without fail, and explain his position, the notice said.

The FBR Member is further required to bring original CNIC and the following record/ Information in his possession or with respect to above said matter, so as to clarify his position vis a-vis probe

The record included summary of Large Taxpayer Companies of LTD Lahore in which refund have been issued; list of all moveable/Immoveable assets within Pakistan (Properties, Investments or accounts held directly or indirectly by him, his spouse or family and any other information/ record pertaining to above said matter), FIA notice added.