Tax fraud case registered against ex-FBR chief Shabbar Zaidi | The Express Tribune

The Federal Investigation Agency’s Anti-Corruption Circle has registered a case against former chairman of Federal Board of Revenue Shabbar Zaidi on charges of issuing unauthorised income tax refunds amounting to more than Rs16 billion during his tenure.

According to the FIA, the case was lodged on October 29 at the Anti-Corruption Circle in Islamabad. The FIR names Zaidi, several FBR officials, and bank executives as accused, alleging that the refunds were made illegally during a period from May 2019 to January 2020.

The investigation report stated that the beneficiaries of these refunds included three banks, two cement manufacturing companies, and one chemical company. The FIA alleged that these companies and banks were clients of Zaidi’s private audit and consultancy firm prior to his appointment as FBR chairman, creating a conflict of interest.

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The FIR further noted that Zaidi, while serving as FBR chairman, allegedly colluded with officials within the department to process and release these tax refunds without proper authorisation. The inquiry was initiated based on what the FIA described as a ‘credible source report’ confirming the unauthorised disbursement of Rs16 billion to entities that had professional ties with Zaidi before his appointment.

FIA investigators have stated that the actions constitute punishable offences under the Anti-Corruption Act, 1947, and the Pakistan Penal Code. Following the inquiry, the authorised competent authority approved the registration of a formal case against the former FBR chairman and other officials invovled.

Zaidi served as FBR chairman from May 10, 2019 to January 6, 2020, after being appointed during the Pakistan Tehreek-e-Insaf government.