Agenda for meeting was to set up intelligence and investigation office in Karachi along with induction of officials to curb tax evasion
ISLAMABAD: Federal Board of Revenue Member Admin Shahid Hussain Jatoi has held a meeting with officials to discuss tax evasion in Karachi.
The agenda for the meeting was to establish infrastructure of Intelligence and Investigation Department in Karachi along with appointment of officials to curb tax evasion.
The Directorate General of Intelligence and Investigation mostly works as an intelligence arm of FBR but its day to day work involves investigations of revenue-related crime and offences as well. Usually having officers from the Inland Revenue Service, it acts on the information from other law enforcement agencies, informants on its pay roll and corporate whistle blowers.
A source in the FBR said that the objective behind establishment of intelligence and investigation office in Karachi was to unearth evasion of sales tax, income tax and other taxes as well as to take the tax evaders to task.
“The detailed discussions showed that the FBR was specifically focusing on checking and controlling over the menace of tax evasion,” he said, adding that it would be a positive development for increasing the revenue target as well as broadening of the tax net.
The source said that ratio of tax evasion was high in Karachi because of massive business activities which required availability of effective and mobilised intelligence and investigation setup.
“Thus the FBR has taken a timely step for focusing on Karachi in this regard,” he said, adding that it would bring positive and handful results.
However, the source said that establishment of intelligence and investigation infrastructure would not prove sufficient because appointment of honest officers was also a must to get the desired results.
The source said the FBR granted required powers to I&I officers under SRO-351, but halted exercise of these powers on the request of traders and businessmen who expressed fears about possibility of misuse of the granted authorities and powers to the intelligence and investigation officers, whereas, the FBR was of the view that the given powers were need of the hour for the officers to assert their authorities for having due outcomes.
The source recalled that Large Taxpayer Unit (LTU) Karachi had approximately 30% share in the total revenue collection of the FBR, despite the fact that entire 30% revenue was not collected from Karachi alone because a majority of headquarters and head offices of corporate companies and sector were situated in Karachi therefore tax deposited by these companies was shown as share of LTU Karachi.
The Directorate General of Intelligence and Investigation functions with three regional offices headed by directors in Karachi, Lahore and Islamabad.
The regional directors in Karachi and Lahore are assisted by three additional directors. These additional directors are responsible for vigilance, customs and sales tax, corporate and direct tax.
The Islamabad regional director has five additional directors in headquarters, vigilance, customs, sales and central excise, Peshawar and Quetta. Vigilance Wings in Peshawar and Quetta are headed by deputy directors.
Moreover, the directorate was created as an attached department of the Revenue Division in August 1957 headed by a director with HQs in Karachi. Three regional offices were established in Chittagong (then East Pakistan), Lahore and Karachi. The central excise work was entrusted to the directorate on June 18, 1974.
In 1984, the HQs of the directorate were shifted to Islamabad from Karachi. The department was upgraded on 21 February 1985 and it was led by a director General. In 1995, the Directorate General was assigned the role to carry out detailed audit of cases of Sales Tax fraud. The Directorate General shifted into its own premises in Sector G-10/4 Islamabad in August 2004.
In 2005 the Directorate General was assigned the additional responsibilities of Integrity Management. Consequent upon restructuring under reform process, Directorate General Intelligence and Investigation (Customs, Sales Tax and Federal Excise) was re-designated as Directorate General of Intelligence and Investigation – FBR, Islamabad with the responsibility of both direct and indirect taxes.