PM forms joint inquiry team of intelligence officers, financial experts to probe rising tax fraud cases

Prime Minister Shehbaz Sharif has ordered a joint inquiry team comprising intelligence agencies and field experts to investigate rising sales tax fraud cases and develop actionable recommendations. 

According to a news report, Petroleum Minister Dr. Musadiq Malik has been appointed as the convener of the team. Representatives from intelligence agencies and financial experts are included, while members of the finance and revenue ministries are excluded to ensure impartiality.

The team includes prominent members such as MNA Bilal Azhar Kayani, former FBR official Tanvir Akhtar Malik, chartered accountant Ghazi Akhtar Khan, and Dr. Fareed Zafar, along with representatives from the Federal Investigation Agency, Financial Monitoring Unit, and FBR’s Intelligence & Investigation wing.

According to the Prime Minister’s Office, the team will analyze reports from the Intelligence Bureau on sales tax fraud cases, focusing on financial transactions and alleged collusion between public officials, PRAL employees, and tax evasion networks. 

The inquiry team is expected to submit its report within one month. 

It will also examine the Federal Tax Ombudsman (FTO)’s role in handling tax fraud cases, particularly decisions and media engagements impacting legal proceedings. 

This comes after the FTO’s legal advisor recently alleged collusion in a Rs528 billion tax fraud involving fictitious transactions worth Rs1.6 trillion in iron and steel scrap sales.

The Federal Board of Revenue (FBR) has intensified its crackdown on tax fraud, arresting CFOs and executives involved in fraudulent schemes in October. These operations uncovered significant losses, including fraudulent claims on input taxes for coal and lead. 

Last month, the PM rewarded an FBR officer with Rs5 million for thwarting a Rs292 billion tax fraud attempt.