Islamabad, 1 June 2024, (GNP): The Federal Bureau of Revenue (FBR) announced it will investigate the incident where its officers were involved in a fistfight over a portion of a company’s tax refund.
An FBR spokesperson confirmed that the officers allegedly involved in the incident have been removed from their posts and that Chief Commissioner Corporate Tax Office Lahore Abid Bodla will be leading the fact-finding inquiry over the matter.
What was the deal?
The issue revolves around a tax refund of Rs550 million for an air conditioning manufacturing company, with a subsequent agreement for a 10% “cut” of Rs55 million.
A dispute arose over the distribution of this “cut” when an officer, unrelated to the responsible FBR field formation, was found negotiating a share in the “cut” with the company’s representative.
The tax officer authorized to issue the refund was informed that a cheque for Rs55 million had been issued, and the refund issuers, facilitators, and enablers would receive their shares based on their roles and ranks.
The situation escalated when the deal’s enabler allegedly received the “cut” in cash and distributed it among his superiors, including one who had received a “performance award” from the government. This left the officer who sanctioned the refund without his share.
Additionally, the officer was informed that the cheque issued for the company’s “cut” had bounced, suggesting it was part of a plan to receive the amount in cash.
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The fistfight
When the sanctioning officer approached the company about the “cut,” he was informed that it had been paid in cash. Outraged, he summoned the enabling officers, who were junior in rank and from a different formation, to his office. Instead of apologizing, one of the junior officers provoked a fistfight.
The situation escalated further when the junior officer instructed his staff to retrieve a pistol from his car, creating a highly volatile and dangerous scenario. Fortunately, the staff managed to defuse the tension before it led to violence. However, the news of the altercation spread rapidly within the organization and beyond.
As a result, all the suspected stakeholders in the “cut” were immediately removed from their positions. The incident prompted the Federal Bureau of Revenue (FBR) to launch a comprehensive inquiry, led by Chief Commissioner of the Corporate Tax Office in Lahore, Abid Bodla, to determine the facts and ensure accountability. This high-profile investigation aims to uncover the full extent of the misconduct and restore integrity within the FBR.
