FBR to probe officers involved in tussle over tax refund share

• The issue is about “haircut” in a Rs 55 million share of tax refund by a company.
• FBR spox confirms removal of officers the alleged incident.
• Under the agreement, officers expected to receive a share according to their role.
  

ISLAMABAD: The Federal Bureau of Revenue (FBR) has said it will investigate an incident involving its officers involved in a fist fight over a share in tax refund amount from a company, The news reported on Saturday.

An FBR spokesperson confirmed to the publication that the officers allegedly involved in the incident have been removed from their posts and that Head of Corporate Tax Lahore Office Abid Bodla will lead the investigative probe into the matter.

What was the deal?

The issue relates to tax refund to an air conditioner manufacturing company as a refund amount of Rs 550 million was ordered to be released and then a 10% ‘haircut’ of Rs 55 million was agreed.

However, a dispute arose over the stake in it, as an officer said to be in touch with the company’s representative, from an unrelated field formation of the FBR was actually negotiating the deal in return for a specific stake in the “cut”.

Meanwhile, the tax officer who was responsible for issuing the return was informed that a check of Rs 55 million had been issued with the issuers of the return as well as the intermediaries and agents of this deal to get their share of the ‘haircut’ depending on their role and position.

The situation went awry after the person in charge of this deal allegedly took a “haircut” from the company in cash and shared it with his immediate and distant bosses, including the one who received a “performance award” from the government.

This, however, left the person who approved the release of the return deprived of his share of the “haircut”.

The officer in question was informed that the check issued for the amount released by the company under the head of ‘haircut’ had bounced, which appeared to be part of the scenario that the amount would be collected in cash.

The fist

Later, when the sanctioning officer took up the “severe” matter with the company, he was told that he had been released in the form of cash, which led him to call to his office the employees who were lower in rank but belonged to the different formation .

He called into his office the officers who were inferior in rank, but belonged to a different formation. Instead of apologizing, the junior officer provoked a fistfight.

He also ordered his staff to bring a pistol from his car. The situation was calmed down by the staff, however the news spread like wildfire resulting in all the suspected involved in this ‘cut’ being removed from their posts and an investigation has been ordered to establish the facts.