LAHORE: The Federal Board of Revenue (FBR) has taken strict disciplinary action against Inland Revenue officer for releasing unauthorized sales tax refunds.
The case has resulted in a major penalty being imposed after a detailed inquiry confirmed serious violations.
According to an official notification issued on August 18, 2025, the FBR initiated a fresh (de-novo) investigation against Abdul Rauf Nasir, an Inland Revenue Service (IRS) officer of BS-18 rank. The charges included inefficiency, misconduct, and corruption linked to the processing of refunds in suspicious cases.
The inquiry was conducted by Ms. Shazia Abid, Commissioner-IR, Regional Tax Office-I, Karachi, who was appointed as the inquiry officer. In her report dated March 29, 2025, she recommended a major penalty after finding sufficient evidence of wrongdoing.
Following the inquiry report, a show-cause notice was issued to the accused on April 15, 2025. He submitted his written reply on April 28, 2025, and was also granted a personal hearing by the Secretary Revenue Division/Chairman FBR on August 11, 2025. During the hearing, the accused officer reiterated his earlier stance, claiming that he had not received any red alerts before authorizing the refunds.
However, records revealed that refunds for Royal Industries and Emmar Industries were released despite alerts indicating that these units were suspicious, with concerns about fake purchases and questionable physical existence. The accused officer failed to provide evidence that these cases were referred for post-refund audits, nor could he justify bypassing manual scrutiny where required.Tax consultation
After reviewing the charge sheet, inquiry findings, show-cause reply, and hearing proceedings, the competent authority concluded that the charges were fully established. Consequently, a major penalty of reduction in rank was imposed, demoting Abdul Rauf Nasir from BS-18 to Assistant Commissioner-IR (BS-17) for two years.
In addition, his performance allowance has been suspended, and he has been informed of his right to appeal to the Appellate Authority under the Civil Servants (Appeal) Rules, 1977 within 30 days of the notification.
The FBR emphasized that this action reflects its commitment to accountability and strict compliance with tax laws, ensuring that officers are held responsible for any misconduct affecting public revenue.
