FBR union man suspended for tampering with tax data

Islamabad
An interesting case has emerged in the FBR which discloses that nexus between alleged corrupt tax officer and staff union could cause massive revenue losses to the national kitty.
Official documents exclusively available with The News reveal the tale of alleged tax fraud where the Intelligence & Investigation (I&1) Inland Revenues (IR) Lahore foiled attempts to manipulate the web portal system through late entry of income tax returns and wealth statement with the purpose to launder Rs10 billion deposited into accounts of alleged culprits.
The Directorate I&1, IR Lahore received information about a huge farmhouse being constructed in the posh and highly expansive area of the city. The intelligence gathered revealed that this farmhouse is being constructed (comprising twenty five feet high parameter wall and three large mansions within) by owners/directors of Master Tiles and Ceramics, Master Group of Industries, Gujranwala.
The online data available with the FBR revealed details about directors of the company namely Sheikh Mahmood Iqbal having NTN# 0305692-9, Sheikh Muhammad Asghar with NTN# 34101-1848788-3 and Sheikh Muhammad Akbar with NTN# 34101-4589252-3.
In response to notice U/s 176 of ITO, a major property tycoon intimated that this farmhouse was sold at Rs250 million and after including other sold properties the total cost went up to Rs423.60 million in the names of the directors of the said company.
Out of total payment of Rs423.60 million, an amount of Rs213.6 million was adjusted against supplies of goods and work done by the Masters Tiles and Ceramics Gujranwala (NTN-1435500-7). The remaining payment of Rs210 million was made by purchasers through Pay Orders/Cheques or in cash. The payment of Rs160 million was made from bank accounts of Muhammad Humayun Khan s/o Raja Taj Muhammad through pay orders and cheques, Rs10 million from bank account of Khurram Taj s/o Raja Taj Mohammad through cheques, Rs20 million through cash deposits and another Rs20 million through online cash deposits into the account of major property outfit.
The I&I IR inquiry report sent out to chairman FBR states that prima facie it seems that two persons who paid major amounts are individuals of little means, brothers and purportedly doing business under the same name i.e. KH Traders.
The inquiry report further stated that the arrangement appears to have been built as a conduit to minimise tax burden of directors of M/S Masters Tiles. The two bothers namely Muhammad Humayun Khan and Khurram Taj are allegedly and apparently name lenders or front men for the said company. The FBR’s investigation states that probably a sham arrangement was managed to maintain bank accounts in the name of two brothers wherein money actually belongs to said directors of Masters Tiles as it is evident from its utilisation in purchase of property.
An inquiry from FBR’s web-portal was made on 27-1-2015 regarding tax profiles and income tax returns filing status of Mohammad Humayun Khan and Khurram Taj. Both were found to be non-filers of income tax returns for the last five years.
Thereafter, bank accounts opening documents and the bank statements of accounts of two persons were requisitioned from Al-Baraka Bank, Askari Bank, Standard Chartered Bank and NIB Bank. It was revealed that mobile phone number of Muhammad Humayun Khan was issued in the name of M/S Masters Tiles by the concerned cellular company.
During the pendency of requisite information from banks, a letter dated 09-02-2015 from A.R of Mohammad Humayun Khan was received in the Directorate I&1 IR wherein it was claimed that taxpayer is regular filer of income tax returns from last five years and has made payment of taxes of Rs28,121,929. However, copies of income tax returns were not provided.
The inquiry report mentioned that Muhammad Humayun Khan was a non-filer of income tax return as par data available on FBR’s web portal at time of initiation of inquiry regarding investment in expansive properties in Lahore.
Meanwhile, on 10-02-2015, Muhammad Akram Sheikh, senior advocate Supreme Court, has informed vide letter dated 10-02-2015 that the client namely Muhammad Humayun Khan has filed a writ petition number 3346 of 2015 wherein vide interim order the honorable justice Mansoor Ali Shah Lahore High Court has suspended the operation of this Directorate notice dated 31-1-2015.
The I&1 IR Lahore obtained copy of writ petition from LHC along with copy of interim order. The writ petition found attested copies of income tax returns and wealth statement pertaining to the period relevant to tax year 2009 to 2013. In case of Muhammad Khuram Taj, the same attested copies of income tax returns were attached along with writ petition.
An inquiry was initiated by the Directorate I&I IR Lahore to verify the genuineness of income tax returns filed by Muhammad Humayun Khan and Khurram Taj.
During the course of inquiry conducted on 16-02-2015 regarding alleged back dated filing of returns for tax year 2009 to 2013, both the taxpayers are falling under jurisdiction of RTO Gujranwala. It was confirmed that Nasir Ali Kamran, UDC, TMS Lab RTO Lahore in collusion with Malik Saigol Hussain, IIR, RTO-II Lahore has allegedly and fraudulently entered income tax returns in MAHASIL after tampering of data and in violation of standard operation procedures with an aim to forge income tax returns.
Nasir Ali Kamran, UDC TMS Lab RTO Lahore in his written statement confessed that income tax returns were handed over by Malik Saigol Hussain RTO-II Lahore for their entry into MAHASIL against promise of illegal gratification of Rs25,000. During inquiry, it was observed that Naeem Hussain, Deputy Commissioner, Unit-6 Zone-XII RTO-II Lahore had attested these bogus income tax returns. He also stated that he attested these copies on the insistence of Saigol Hussain on the pretext that the applicants required these copies to contest elections of chambers of commerce and industries.
Now with the approval of Chairman FBR Tariq Bajwa, the Board suspended Naeem Hassan, DCIR (BS-18) RTO-II Lahore and Malik Saigol Hussain Inspector IR Lahore, who is also senior vice president of staff union, with immediate effect.