LAHORE: The Federal Board of Revenue has set a bad precedent by recommending promotion of seven of its senior officials from Grade 19 to 20 instead of punishing them for not filing their tax returns for tax year 2013, it is learnt.

Non-filing of tax returns is an offence under the Civil Servant Act of 1973 that seeks initiation of legal action, such as imposition of penalty etc, against those officials who fail to file their returns within a specified time frame.

Official sources say since the FBR’s top management knew well about the list of its own 1,090 law violating senior and junior officials, it recommended promotion of Imtiaz Ahmad Sheikh, Collector, Mukarram Jah Ansari, Director, Dr Zulifqar Ali Chaudhry, Director, Dr Asid Mehmood Jah, Collector, Surraiya Ahmed Butt, Director, Dr Muhammad Zubair Yousfani, Secretary and Muhammad Asghar Khan, Director allegedly in violation of the rules.

They say since the FBR is the supreme tax collecting institution of the country, non-filing of tax returns by its own officials has put a question mark on its ‘performance’.

“And more you can see the step taken by Chairman Tariq Bajwa-led FBR team, which awarded promotions to aforementioned officials despite knowing about the fact,” criticised an insider while talking to Dawn on Saturday.

While terming the non-filing of returns a case of misconduct rather than deserving of promotion, the official said the precedent set by the management was unprecedented in the history of FBR.

While commenting on the situation, Naeem Akhtar Sheikh, an expert on chartered accountancy, corporate and tax-related issues, termed the issue a great dilemma of the hour. He was of the view that when the FBR’s own employees would be involved in such offence, how they would ensure transparency in tax collection.

“It is really very surprising to hear this. Although I don’t know well about the requisite law, it is however a crime if the FBR or any other government official doesn’t file the tax returns. And giving promotions to such officials is another big offence,” he added.

So such officials should have been punished rather than being awarded promotions, he contended. He advised the FBR to impart ethical training to all of its officials, especially those who didn’t file tax returns.

The FBR senior member, Shahid Hussain Asad, said under the rules related to promotions etc, there was no binding on giving promotions to civil servants on the basis of their failure in filing tax returns.

“Although promotion of aforementioned officials has been recommended, the FBR has yet to issue a formal notification in this regard,” Asad, who is also supposed to be the FBR’s spokesman, added.

He said the issue might cause delay in the officials’ promotions and not stop. “We have also issued notices to all those who have not filed their returns. And surely we will take legal action against them under the rules,” he maintained.

Published in Dawn, June 1st, 2014