Fraudulent Tax Registration and Fake Tax Returns against a Sindh Government Employee --- FTO Orders to Immediate Detachment of the Employee’s Salary Account

Islamabad 21-03-2025: The Federal Tax Ombudsman (FTO) Mr. Dr. Asif Mahmood Jah Hon’ble Federal Tax Ombudsman (FTO) has recently exposed a significant case of maladministration involving misuse of identity leading to fraudulent income tax registration and fake tax returns filed against a junior government employee from Sindh. The victim, a junior clerk in the Government of Sindh, was unknowingly registered for income tax, and fraudulent returns were filed for the tax years 2014 and 2015, indicating substantial fabricated incomes and assets. This fraudulent activity resulted in an ex-parte tax assessment, creating an unjustified liability of over Rs. 63 million, leading to the illegal attachment of his bank accounts, including his salary account.

During the investigation, the Federal Tax Ombudsman (FTO) revealed glaring administrative lapses by tax officials, including registration without proper identification, submission of fake returns from an overseas IP address, and illegal attachment of salary contrary to Rule 128 of Income Tax Rules, 2006, and fundamental rights under the Constitution of Pakistan. Citing a Supreme Court judgment emphasizing the role of the Federal Ombudsman as an alternate remedy, the Federal Tax Ombudsman (FTO) recommended immediate detachment of the employee’s salary account, directed a detailed investigation against the individuals involved, and called for procedural reforms to prevent similar incidents in the future. FBR has been instructed to comply promptly and submit a detailed report within 60 days.

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