Sources told Business Recorder that the FTO received a written representation/compliant containing allegations of misuse of authority by the PRAL, TFC/NTN and FBR officials by flouting the law in issuing NTN without fulfilling the statutory obligations. On the complaint, FTO Office has started investigation and directed Federal Board of Revenue (FBR) to submit comments on the issue.
When contacted, complainant Ali Mansoor Khan and his lawyer said that there is a loophole in the registration of taxpayer system where Computerised National Identity Card (CNIC) of citizens of Pakistan can be manipulated for issuance of NTN used for filing tax returns and claiming refunds without the consent of actual citizens.
The lawyer said that the NTNs were issued in certain cases without any knowledge of the persons whose CNIC was used for the purpose of issuance of NTN certificate and thereafter its mishandling/misuse. "This is evident from the fact that certain taxpayers have brought to the notice of the FBR/Pakistan Revenue Automation Limited (PRAL) about misuse of the system and issuance of NTN without any applications from the concerned persons. It is reported that a strange activity has been forwarded to the PRAL/FBR for appropriate strict lawful action against the real culprits to save the innocents citizens of Pakistan and protect the interest of national exchequer but due to long silence from the authorities, the matter has been referred to the FTO for proper investigation," he added.
The issue related to tax matters of individuals/persons/citizens has been defined as classified and confidential information under the provision of Income Tax Ordinance, 2001. The FBR authorities are custodian of the confidential/classified/privileged information but the practical examples portray completely different view and exposed the negligence on the part of tax department.
"It is quite strange that when the whole system of submission of applications, verification of data/documents regarding the issuance of the NTN is under the command and control of the FBR/PRAL/NTN Cell, how and why the CNICs of some citizens have been misused. Bogus NTNs issued on fake documents by misusing CNICs must be cancelled immediately and FIRs be lodged against the persons involved in it. Leakage in shape of picking a tax record of persons/citizens/taxpayers and/or easy access of computer-based electronic information is a severe criminal offence and persons/officials responsible for the security and safety of most confidential data of the taxpayers may be liable to prosecution because they are the lawful custodians of the secret data," the layer said.
Earlier, FTO has observed that the FBR appears to have badly failed to devise a secure automated online system to safeguard confidential and classified data of taxpayers. It was directed to commission a thorough investigation by a credible third party in relation to the vulnerabilities of the FBR e-system. The important recommendation was not implemented by the FBR without any logical excuse. The FTO order suggested the FBR to take immediate remedial steps to ensure fool proof security of taxpayers' data; create a system where the addition of a client of EI is predicated on verification by the Commissioner concerned.