"This is misnomer, as the RPOs are issued on priority. Those who make hue and cry want to violate the priority," he added. He said the government considers balance of payment before payment as it cannot pay more against fewer receipts. "We follow the FBR policy of balance of payment in making payments against the claims," he said and added that half of the claims are either not admissible or are those are made on the basis of fake invoices."
"We cannot issue any claim without verification," he asserted. He said refunds are never stuck up. Instead, there are certain issues beyond our control, which relate to the proof of refunds by the claimant. The claimants take time in producing proof queues up for payment once he proves his claim. "The queue system for refund claims is very strong and no one can violate it. This is the point where most of the complaints lodge a complaint against the system.
"The influential ones or those with having strong links usually lodge a complaint against a long 350 of claimants ahead of them," he pointed out. He said the system of CREST has been replaced with the STRIVE to verify the refund claims. "The system of Strive conducts a strict scrutiny of refund claims and it would block a file in case a few invoices are misplaced in the claim."
"We were verifying the claims after issuing RPOs under the CREST system, which has now been replaced with the STRIVE where we verify it before issuing the RPO, which means the claims got stuck up in case the input and output does not tally in the file." He further pointed out that the RTO can only issue refund claims up to a certain limit to avoid over drafting. This is a policy of the government. We cannot disturb the queue as well, as the FBR does not allow it.
When pointed out the cost of delay due to the system, he said the RTO cannot issue a claim without verifying it to avoid a fraudulent activity. "Just imagine what would happen if the system of check and balance is ignored. You have already witnessed frauds of high magnitude in the past, which are being contested in courts till date."
He said the check and balance would always cause a delay, as the RTO cannot issue credit against a transaction where the buyer has not filed his return yet. It is a responsibility of the supplier to ensure whether the buyer is fully compliant or not. "Otherwise, the claim would be considered as acting in connivance with the buyer." He said the verification system is neither slow nor incorrect but is based on real time. He said only tax education would promote tax culture.