FBR issues SOP to check bogus tax refunds

ISLAMABAD: The Federal Board of Revenue (FBR) has circulated, among its field offices, the Standard Operating Procedure (SOP) to block or check bogus and suspicious refunds (Income Tax and Sales Tax) and strengthened Internal Controls for eliminating this curse.

According to an FBR press release, the Directorate General of I&I-IR issued a letter containing SOP to the all field offices on October 31.

The SOP related to formation of vigilance cells, functioning of vigilance cells, pre-refund analysis mechanism, post-refund monitoring and centralised refund monitoring.

Earlier in a separate letter issued on October 25, the Directorate General Intelligence and Investigation (IR), FBR Islamabad issued the guidelines for Strengthening of Internal Controls to block/ check bogus and suspicious refunds (Income Tax and Sales Tax).

The letter, addressed to Chief Commissioners of all Large Tax Payers Units (LTUs) and Regional Tax Office (RTOs), explained in detail the cause of failure of internal system of checks and balance, facing and addressing these challenges, ideal and fool-proof Refund Monitoring Mechanism further elaborating the steps of the Refund Monitoring Mechanism, and enforcement of the aforesaid Monitoring Mechanism. (APP)