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مشاهدة النسخة كاملة : PAC declares tax amnesty to FWO ?illegal?


ahlam1399
09-23-2016, 05:28 AM
Calls for refund of tax money



ISLAMABAD: The Public Accounts Committee (PAC) on Thursday declared illegal the tax amnesty being enjoyed by the Frontier Works Organisation (FWO) by the Federal Board of Revenue (FBR) and called upon the institution to return the tax amount.

The PAC took a strong **tice of FWO’s attitude for its continued refusal to conduct an audit of their accounts by the Auditor General of Pakistan (AGP) despite being a government department.

The PAC was told that the FBR had given tax amnesty to the FWO and it was **t paying taxes to the government.

During the examination of the audit para relating to the Fata Secretariat for the year 2013-14, AGP Rana Assad Amin complained to the committee that being a government department, the FWO refused to conduct the audit of its account from his department. “The GHQ and all other institutions were conducting the audit of their accounts through the AGP but the FWO refused it though that it was **t registered as a company but working as a contractor,” said Rana Assad Amin.

Expressing an**yance at the FWO, the PAC directed it to refund all the due taxes and audit its accounts through the AGP.

The PAC was told that the release of funds to the Fata Secretariat was delayed and, therefore, the projects could **t be completed on time.

The AGP told the committee that the contracts were awarded in Fata without tender and under the agreement only the FWO was getting all the contracts.

PAC’s acting Chairman Sardar Aashiq Gopang asked if the FWO representatives were present in the meeting. The AGP remarked when the FWO was **t conducting audit through the department, how it was possible that the FWO officials would appear before the committee.

“We have also registered our complaint to the Defence Ministry about the FWO **t conducting the audit but have **t received any reply,” he added. The audit officials requested the PAC to ask the FWO to conduct the audit of its account under the Article 11 7 (2) of the Constitution.

PAC member Mehmood Khan Achakzi said that some like it or **t but the money belonged to the people of Pakistan and audit should be conducted even of single penny.

The Auditor General of Pakistan asked the PAC to direct the FWO for the recovery of taxes and to conduct a complete audit of their accounts by the Auditor General of Pakistan. “The FBR has wrongly given them tax amnesty and it is against the law,” he told the committee and added if the system was to be corrected, they should be directed to conduct the audit so that a message should be conveyed to all the institutions that they were bound to conduct audit under the Constitution.

He also told the committee that earlier the FWO was conducting its audit but for the last 10 to 12 years, they had been refusing audit through the Auditor General of Pakistan. The audit officials were of the opinion that FWO should also be treated like other contractors.

On the request of the Auditor General of Pakistan, the PAC directed the FWO to refund all the due taxes and conduct audit of their accounts.

The PAC also declared the contract of $49.705 million of the NLC in violation of rules and directed recovery of the amount.

The audit officials told the committee that the management of Fata Secretariat paid Rs4.22 billion ($49.705 million) to the FWO for the 10 projects for the work done during 2011-12.

The audit observed that excess expenditure of Rs674.311 million ($7.967 million) was incurred in the 10 projects over and above the construction cost permissible under the NHA CSR, 2009 of district Tank rates which already included 25 percent on the estimated cost for overheads, profits and preliminaries.

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