KARACHI: The Federal Investigation Agency (FIA) has initiated enquiry into the allegations of corruption, bribery and illegal approval of tax refunds to large taxpayer companies by the officers of LTO Lahore.
Badshah Khan Wazir, Member Operations FBR, has been summoned by FIA to submit record of large taxpayer companies in which refunds have been issued in last five years.
An official said the Auditor General had strongly recommended legal proceedings against the tax officials responsible for sanction of undue refunds and also analyse the weaknesses in the internal controls leading to such lapses of inadmissible refunds.
The official said neither the automation system of the FBR nor the functionaries of the field formations were able to flag and unearth the incorrect claim of tax credit.
The issuance of refund without observation of prescribed law resulted in revenue loss to the tune of billions of rupees.