For instance, a recent report said that "the Regional Tax Office (RTO) Karachi had received only 1,150 tax returns by due date, (December 31, 2007) out of the 5,000 registered corporate tax payers". The FBR had to extend the date of filing returns to January 14, 2008, to induce them to comply. Latest report says the corporate bodies are asking for a further extension of the date.
The tax collections also show a dismal figure. The total collections till December 31, 2007 were about Rs 20 odd billions as against a figure of over Rs 100 billion during previous corresponding period. And this is the story of the major taxpayers - not the small fry.
Stories of tax collected from third parties (withholding tax) but not paid to the treasury are rampant. There is hardly any co-ordination between the various tax departments, and obviously, returns filed with one authority may not be identical to one filed with another by the same assessee. In this connection the role of auditors (chartered accountants, no less!) and tax advisors who certify accounts of tax payers or file returns on their behalf, is no less murky.
Then of course there are tax officers themselves, who, for a "consideration" would turn a blind eye towards the shenanigans of the assessee or their own underlings. Even the documentation for tax refunds duty drawbacks etc, is falsified or lost in the labyrinths of officialdom, even in cases where computerisation should not let that happen.
To inculcate a sense of national conscientiousness and patriotic duty based on ethical behaviour is a crying need of the day. Half hearted attempts to sort out this mess will not provide the answer. Some dedicated and untiring effort is needed to clear these 'Aegean stables'.
[To be continued]

Copyright Business Recorder, 2007