ISLAMABAD/LAHORE – In a stern warning against lack of transparency and efficiency, the Appellate Tribunal of Inland Revenue (ATIR), Lahore, has directed the Chairman of the Federal Board of Revenue (FBR) to take action against officials involved in the ongoing tax fraud case.
The tribunal’s directives follow departmental officials repeatedly failing to produce essential records or to appear before the court, despite clear and specific judicial orders.
“Dubious and Ulterior Motives”: The ATIR Lahore judgement, delivered in the matter of Bright Star Engineering Works vs Commissioner Inland Revenue (Lahore), expressed deep concern over the tax authorities’ non-cooperative attitude. The bench noted that such conduct suggests “something dubious and ulterior motives,” where records are intentionally withheld to shield irregularities or undermine the sanctity of statutory limitations.
According to the tribunal, departmental representatives’ lack of transparency erodes public confidence in the integrity of official tax records and administration.
Handicapped by Missing Records. The tribunal highlighted a disturbing pattern of tax officials’ negligence, where “missing records” are frequently used as an excuse to stall proceedings. In this case, the tribunal expressed suspicion that, while the initial allegations involved massive tax fraud, the subsequent show-cause notice was issued for a nominal amount of Rs. 180,264—after a lapse of 5 years, rendering the case time-barred.
“The tribunal cannot assess the scope of tax fraud or identify responsible parties because the official record is missing,” the bench said.
Demand for Internal Accountability. The court has now called for an immediate inquiry by the Federal Board of Revenue to assign responsibility and penalise those who have obstructed justice. The ATIR emphasised that if left unchecked, this behaviour would continue to strike at the heart of the country’s tax administration.
The FBR has been ordered to:
- Initiate a formal inquiry into the missing records.
- Identify the officials responsible for the non-appearance and non-compliance.
- Implement strict disciplinary action under the law to prevent such controversies in the future.
This development underscores the growing demand for accountability in FBR, as the government seeks to modernise tax collection and eliminate corruption within its ranks to stabilise the national economy.