The Federal Board of Revenue (FBR) has removed a senior auditor for failing in investigating a major sales tax fraud in Karachi, involving an alleged loss of Rs. 238.4 billion to the national exchequer. The decision highlights the FBR’s commitment to accountability and strict enforcement of investigation standards.
According to an official notification, Altaf Hussain Khurho, Senior Auditor (BS-17) at the Regional Tax Office-I, Karachi, has been dismissed under the Civil Servants (Efficiency and Discipline) Rules, 2020. The case stems from FIR No. 01/2024, registered on March 26, 2024, against Awais Bhutta of M/s New Metro Footwear Co. and 12 others for committing large-scale tax fraud.
An intelligence report from the Prime Minister’s Office revealed serious lapses in Khurho’s investigation, prompting the FBR to take disciplinary action. The inquiry, led by Aftab Alam (IRS/BS-20), Director General of International Taxes Operations, initially suggested a minor penalty of withholding promotion for one year. However, after review, the FBR deemed this too lenient given the scale of negligence and the significant loss to the national treasury.
Records showed that Khurho failed to pursue critical steps during the investigation, including the cancellation of bail for two accused individuals who did not appear for questioning. He also did not take sufficient measures to strengthen the case or provide meaningful findings in the final challan.
The inquiry further revealed that six beneficiaries had illegally received input tax adjustments totaling Rs. 197.27 million, of which Rs. 117.41 million has been recovered, leaving Rs. 79.86 million outstanding. Despite Khurho claiming he had performed his duties and that prosecution was the responsibility of the legal team, the FBR concluded that his inaction constituted criminal negligence.
The FBR emphasized that such inefficiency directly contributes to financial losses for the government. The removal of the auditor serves as a warning to other officials and reinforces the importance of thorough and responsible tax investigations.
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This action reflects the FBR’s ongoing efforts to maintain transparency, strengthen compliance, and ensure that officers take full responsibility in investigating high-value tax fraud cases.
