ISLAMABAD: The Federal Board of Revenue (FBR) has complained that the grant of bail to a suspect in Rs40 billion tax fraud case by the Islamabad High Court (IHC) on just Rs100 surety bonds has hampered FBR’s ability to investigate financial scams and set a dangerous precedent for tax evasion cases by rendering the law passed by parliament irrelevant.

The FBR filed a petition before the Supreme Court seeking cancellation of the post-arrest bail to the suspect.

On Dec 23, Justice Babar Sattar while granting post-arrest bail to the suspect observed that he had no role in the taxpayer’s business operations or in any understatement of tax liability. The judge criticised tax officials for abusing their powers under the Sales Tax Act and initiating criminal proceedings disregarding the established legal precedents.

The Supreme Court is set to review the FBR petition challenging the IHC decision........

© Dawn Business