Hackers are exploiting vulnerabilities in the Federal Board of Revenue’s (FBR) sales tax system, altering genuine taxpayers’ sales tax returns to claim fake sales/purchases, resulting in tax credits and refunds amounting to billions.
The Federal Tax Ombudsman (FTO) has issued directives to the FBR, urging immediate action against hackers involved in forging sales tax returns. The complaint, filed against the Member IR (Operations) FBR and Director Intelligence and Investigation (IR) Karachi, alleges the failure to address the deletion of fake purchases and sales in the annexures of the Sales Tax Return for a Registered Person (RP) in September 2023.
The complainant, engaged in the business of Paper and Paper Board products in RTO-1, Karachi, discovered a changed login password, mobile number, and email by hackers. Despite seeking help from the tax office and FBR officials, fake purchases and sales were submitted in their September 2023 sales tax return.
The complainant, facing business disruptions, urgently requested the removal of the fake entries. Allegedly, the Department did not act on the request, leading to the formal complaint.
During the hearing, the PRAL official stated that field officers cannot delete the annexures, emphasizing the need for a detailed investigation. The FTO order directs Member (IT) and DG I&I to investigate thoroughly, uncover the hackers/criminals, and take immediate legal action.
FBR Member IR (Operations) is instructed to resolve the complainant’s grievance in consultation with Member (IT) and DG I&I promptly, ensuring the business gets back on track.
