Alleged tax evasion: FBR chief told to decide cases by June 30

The Lahore High Court here on Monday directed Chairman Federal Board of Revenue (FBR) and tax officials concerned to decide by June 30 the cases about alleged tax evasion by Bahria Town administration. The court also directed the FBR Chairman to furnish a report about the decisions on tax evasion before the High Court registrar.

The petitioner, a bar member Shahid Jami, contended that during audit of Bahria Town for tax year 2006 it was detected by the then officer that the purchase of land expenses claimed at Rs 9.2 billion were not supported with evidence which attracted tax liability of Rs 2.0 billion. He pointed out that the tax officer was transferred on bringing on record the said discrepancy but he refused the high-ups to drop the issue. Later, the case was assigned to a very junior officer who dropped the issue while concluding the audit. During the course of hearing FBR’s counsel objected the jurisdiction of the court to hear the subject matter. However, the court rejected the argument and issued necessary directions to the FBR Chairman and concerned tax officers.