Tax refund case: Shabbar Zaidi gets clean chit from FBR

ISLAMABAD: Former chairman of the Federal Board of Revenue and top chartered accountant Shabbar Zaidi has been given a clean chit by the FBR Chairman Dr Muhammad Ashfaq Ahmed.

Shabbar Zaidi has been facing allegations of favouring six companies in obtaining tax refunds in which he remained associated in the past. The allegations of audit officers had led to an inquiry against Shabbar Zaidi.

The progress on the probe into the tax refund case against Shabbar Zaidi was delayed in the Public Accounts Committee (PAC) due to the absence of FBR Chairman Dr Muhammad Ashfaq Ahmed following his busy schedule.

Later, PAC Chairman Rana Tanveer held a session on February 24 in which the audit officers complained about Zaidi’s illegal act to favour six companies including Engro, Habib Bank and Standard Chartered Bank for tax refunds. Khawaja Asif criticised that Zaidi should not accept the position of FBR chairman.

Tanveer said that another complaint was raised against Muslim Commercial Bank (MCB) regarding non-compliance with legal procedures for tax refunds. Shabbar Zaidi had served as the chartered accountant of Engro, Habib Bank and Standard Chartered Bank and only a thief is aware of such tricks for financial theft.

Dr Ahmed came in defence of Zaidi and said that an FBR chairman has no direct role in tax refunds but the PAC is independent to summon ex-FBR chairman to question. The auditors would have definitely written a para after tracing an illegal move in the tax refunds.

Dr Ahmed added that it was the right of the companies to receive tax refunds during Zaidi’s tenure. In tax refunds, a director’s role is significant as compared to an FBR chairman.

He said that the tradition of receiving advance tax from the companies had been ended in FBR.