ISLAMABAD – Federal Board of Revenue has issued a clarification on the newsaired on electronic media about the issuance of fake refunds.
FBR has explained that two processes are being used to deal with refundcases,said a press release issued by FBR here on Monday.
The first is the processing of refunds through automated system for theexporters.In this process, the audit of the refund is conducted after the issuance ofrefunds.The other system of refund issuance has been devised for the taxpayers notassociated with the export sector.
The refunds issued through this mode are called the “carry forward refunds.” Such refunds are issued once in a year.The audit is conducted before the issuance of such refunds.
FBR has clarified that taxpayers involved in presenting the wrong invoicesare dealt strictly and recovery is made from them.
Moreover, penalty and default surcharge is also imposed to curb thispractice. Sometimes, the audit process of refunds takes longer period oftime which may cause problem of liquidity for the exporter, in case ofdelayed issuance of refunds.
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To avert liquidity crunch for the businesses, the refunds are issued andthe scrutiny is conducted afterwards.
There are certain inbuilt checks within the system to match the input claimby one person with output claim by another person.
To avoid revenue loss, FBR has almost resolved the issue of fake invoices.Sometimes, it becomes a little cumbersome and lengthy to check the flyinginvoices but the scrutiny is conducted in all the cases.
FBR has computer analytic s system of CREST.It is baseless to assume that FBR does not conduct the scrutiny. Theprocessing of the case may take time but it is certain that all refundcases are audited.
