Coca-Cola Rs2.5bn tax fraud: informant fights for “Inaam”

FBR recovered Rs2.5 billion but hasn’t rewarded the informer, though officers were paid

ISLAMABAD: An informant who risked his position to expose a multibillion-rupee tax evasion scheme by Coca-Cola Export Corporation has been waiting for his promised reward for two years.

The Federal Board of Revenue (FBR) recovered Rs2.5 billion based on the insider’s information but has yet to process his reward claim, even though tax officers involved in the recovery have already received their share.

The informant, officially registered with the FBR for providing key intelligence, unveiled tax evasion by Coca-Cola’s Pakistan branch for tax years 2017 to 2021. Official documents show that the Federal Tax Ombudsman (FTO) directed the FBR to process the reward, but despite acknowledging the informant’s critical role, no payment has been made.

In contrast, the then-chief commissioner of the Large Tax Office (LTO) Lahore and his team, who acted on the informant’s tip, have already claimed their share of financial benefits from the case. The insider, referred to as “Inaam” to maintain confidentiality, has repeatedly sought intervention from the FTO for his rightful claim.

Prime Minister is presenting a commendatory shield to an FBR officer who identified the sales tax fraud

Prime Minister Shehbaz Sharif recently honored a senior FBR officer with Rs5 million for exposing a separate Rs290 billion sales tax scam, emphasizing the importance of recognizing integrity within the tax system. However, this stands in stark contrast to the neglect faced by the Coca-Cola case informant, who accuses the FBR of systemic delays.

The FTO confirmed that the informant provided vital details leading to the tax recovery and assisted the FBR’s Intelligence & Investigation Wing and senior management. Despite multiple appeals, the FBR has not processed the claim. The Member-Inland Revenue Operations, tasked with finalizing the matter, has yet to act.

The informant has urged the FBR chairman to intervene and ensure the disbursement of the reward, claiming his efforts are being overlooked while others benefit. He contends that the lack of action undermines the credibility of the reward policy and discourages future informants from stepping forward.

This case underscores the challenges faced by individuals who expose corporate malpractice in Pakistan, despite the government’s public commitment to transparency and accountability.

Monitoring Desk
Monitoring Desk
Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

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