Demanding bribe: Inquiry against FBR official underway

ISLAMABAD: A complainant from a private sector steel firm has submitted an affidavit with the Federal Board of Revenue (FBR) alleging that a tax official of FBR's Large Taxpayer Unit (LTU), Islamabad, had demanded millions of rupees bribe in tax case and then sought 12 percent amount for settling refunds issue.

In a written complaint, Abdul Sattar Shaheen, Chief Accountant Officer of M/S Pak Steel Mills, Islamabad, alleged that an additional commissioner (IR) called on his cell phone and directed him to give 2 metric tons of M.S Bars to his driver free of cost as he was building his house.

The accountant officer told him that two metric tons of M.S Bars costs Rs200,000 and will not be possible for him to convince his owners to provide him the bars free of cost. In response, the additional commissioner said "Then be ready to face the consequences".

After two days, a notice in case of M/S Pak Steel Re-Rolling Mills for tax year 2019 u/s 122 (9), 122 (5A) of the Income Tax ordinance 2001 bearing No 402 dated 30th January 2020 was received on February 4, 2020, which was followed up by telephonic calls and threats.

Shaheen stated that he started complying with and each and every document which the additional commissioner required during the course of proceedings, he threatened and asked to pay Rs50 million and pay him Rs5 million bribe.

When told that it was not possible for the mills to pay bribe, he passed the order u/s 122 (5A) for tax year 2019 on August 7, 2020 which was received on August 1.

Even after passing this order, he again called on his office on August 11 and 13, 2020 and told the administration that he would re-open the cases of other tax years and open all cases of the group.

Then he repeatedly called and asked for payment of bribe amount of Rs5 million and threats to re-open the cases of members of AOPs and directors of the company either himself or through his junior officers if his demand is not fulfilled. Audio recording of some calls was attached with the complaint.

On August 15, the additional commissioner again called the chief accounts officer of the mill and asked him to come to his office. When he called him back, he said that he will upload draft refund orders approximately amounting to Rs84 million of M/S M.A Steel Casting if you will pay 15 percent, however on his request, he reduced to percentage to 12 percent and he okayed the same to him. On August 16, he again called and directed to provide IBAN of M/S M.A Steel Casting and again asked to settle the matter (pay the money).

This complaint has now been lying with the FBR's headquarters and inquiry is also underway to ascertain facts. When contacted to FBR's official spokesman for seeking comments on Thursday, the spokesman confirmed that the concerned official was suspended a couple of weeks back and an inquiry against him is underway to dig out truth. A BS 20 officer is the inquiry officer, the spokesman concluded.