In its communication, the PTBA highlighted recent reports of substantial fraudulent refund claims filed by taxpayers. It urged the FBR to share comprehensive data, including the number of FIRs registered, the amount of tax evaded, and the actions taken to apprehend and prosecute the culprits.
The PTBA also expressed concerns about the legitimization of non-filers, noting that higher tax deduction rates for non-filers under various provisions of the Income Tax Ordinance have not been as effective as expected. It pointed out that FBR officials often possess critical information about non-filers through audits, monitoring of withholding taxes, and further tax paid under the Sales Tax Act, 1990, but more needs to be done to convert these non-filers into active filers.
The association further urged the FBR to provide updates on the implementation of the point-of-sale (POS) system, which was introduced over two years ago to document the supply chain and enhance tax collection. The PTBA called for data on the number of POS systems installed across the country and their impact on revenue collection through the real-time invoice mechanism.
In reiterating its demands, the PTBA emphasized the importance of publishing detailed records of tax evasion cases, including the progress made in prosecuting offenders and the recovery of evaded taxes. These measures, the association argued, would reinforce public trust in the tax system and enhance compliance among taxpayers.
The PTBA’s letter underscores growing concerns within the legal and tax community over the effectiveness of current enforcement and documentation efforts. It serves as a reminder of the critical need for transparency and robust action in the fight against tax fraud.
