The Federal Tax Ombudsman (FTO) has revealed a startling security breach within the Federal Board of Revenue’s (FBR) IT system, claiming that the entire system is under the control of cybercriminals. The FTO’s order highlighted serious vulnerabilities, including unauthorized access to passwords, manipulation of tax data, and unauthorized filing of returns.
According to a report by Business Recorder, a complaint, filed under Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000, initially focused on the illegal suspension of sales tax registration. However, further complaints were added, including recurring incidents of hacking, unauthorized changes to taxpayer profiles, deletion of invoices, and insertion of fake sales tax documents.
As per the FTO’s report, the FBR’s IT system is susceptible to data manipulation, backdoor entries, and unauthorized transactions, with cybercriminals reportedly having full control without any traceability. The order emphasized that these issues pose a critical risk to the integrity and survival of the FBR’s IT infrastructure.
Despite repeated attempts to address the problem, including efforts to track the hackers responsible for frequent changes to the complainant’s ID and password, the issue persists. The FTO’s findings suggest potential involvement from insiders, particularly from PRAL, the FBR’s IT wing, who may have direct access to the system.
The FTO’s report points to critical weaknesses in the system, including inadequate data security, poor internal controls, and insufficient safeguards against tax fraud. These issues have allowed unauthorized changes to taxpayers’ profiles and the creation of fake transactions, indicating possible collusion between taxpayers and FBR/PRAL employees.
The FTO’s revelations raise serious concerns about the integrity of Pakistan’s tax system, urging immediate action to address these vulnerabilities.
