Tax lawyers accuse FBR’s IT wing, PRAL of facilitating fake invoices

The Multan Tax Bar Association (MTBA) has accused the Federal Board of Revenue's (FBR) IT Wing and Pakistan Revenue Automation Limited (PRAL) of facilitating the issuance of fake and flying sales tax invoices. The association has formally written to FBR Chairman urging immediate action against those involved in the alleged malpractice.

According to the MTBA, officials within these departments have been unlawfully unlocking provisional sales tax returns, allowing registered taxpayers to modify invoices before resubmission. This manipulation allegedly enables tax fraudsters to evade scrutiny and engage in illicit transactions.

The Federal Tax Ombudsman (FTO), in a complaint ruling dated October 3, 2024, had previously identified collusion between tax officials and fraudsters in a case titled Muhammad Sharif vs. Secretary, Revenue Division, Islamabad. Despite this, the association claims that fraudulent practices remain widespread, with regulatory measures failing to curb systemic corruption.

The MTBA has also expressed concern over the implications of SRO 350 (1)/2024, which it says has compounded difficulties for genuine taxpayers. The association has called for urgent intervention by the FBR chairman to impose stricter oversight on PRAL and the IT Wing, ensuring that no further exploitation of the system occurs.

The letter further urged the FBR to take decisive steps to protect honest taxpayers and restore the integrity of tax administration. It stressed the need for immediate action to prevent further financial misconduct and uphold the credibility of the country’s revenue collection system.