Tax experts detect possible misuse of CNICs

RECORDER REPORT

ISLAMABAD: Tax experts have detected a damaging loophole in the taxation system where there is a possibility of manipulation of the Computerised National Identity Card (CNIC) of Pakistani citizen for issuance of National Tax Numbers (NTNs), which could be later used for filing tax returns and claiming refund without the consent of actual citizen. Experts told Business Recorder here on Saturday that the NTNs were issued in certain cases without knowledge of the persons whose CNICs were used for the purpose of issuance of NTN certificate and thereafter mishandling/misuse of the same. Some taxpayers have brought to the notice of the FBR/Pakistan Revenue Automation Limited (PRAL) about misuse of the system and issuance of NTN without any application from the concerned person.

In one case, it has been reported that a strange activity was forwarded to the PRAL/FBR for appropriate strict lawful action against the real culprits to save the innocents citizens of Pakistan and protect the national exchequer. The citizen states that at the time of submission of application for obtaining NTN the eFBR system tells that NTN has already been issued somewhere in the month of March, 2010 by using CNIC and name. The Taxpayer Online Verification shows NTN has been issued under the business name “AKE” with business address “P.., St No…, Jhang Bazar, Faisalabad”. Quite surprisingly concerned Income Tax Office has been shown as RTO Karachi in the NTN details while business address is of Faisalabad. He categorically denies about issuance of said NTN, no application was ever submitted, the said NTN has been issued by misusing CNIC and submitting fake/forged documents: complainant/citizen added.

When contacted, a Lahore-based tax lawyer Waheed Shahzad Butt told this correspondent that the issue related to tax matters of individuals/ persons/citizens comes into the category of classified/confidential information under the provision of Income Tax Ordinance, 2001. The FBR is custodian of the confidential/classified/privileged information, but the practical example completely exposed different views and unmasked the negligence at the part of FBR functionaries.

Most confidential and classified data pertaining to tax matters of citizens/NTN holder of Pakistan is unsafe and any person having email ID of EI and any mobile phone SIM even not registered with the name of user may have free access to the most sensitive information related to taxpayer of Pakistan, he claimed.

It is quite strange that when the whole system of submission of applications, verification of data/documents regarding the issuance of the NTN is under the command and control of the FBR/NTN Cell, how and why the CNICs of some citizens have been misused by some culprits? Bogus NTNs issued on fake documents by misusing CNICs must be cancelled immediately and FIRs be lodged against the real culprits.

Tax lawyer commented that leakage in shape of picking a tax record of persons/citizens/taxpayers and/or easy access of computer-based electronic information is a severe criminal offence and persons/officials responsible for the security and safety of most confidential data of the taxpayers may be liable to prosecution because they are the lawful custodians of the secret data.

Waheed added that earlier Federal Tax Ombudsman (FTO) Office has observed that the FBR appears to have badly failed to devise a secure automated online system to safeguard confidential and classified data of taxpayers. It was directed to commission a thorough investigation by a credible third party in relation to the vulnerabilities of the FBR e-system.

The FTO order suggested the FBR to take immediate remedial steps to ensure fool proof security of taxpayers’’ data; create a system where the addition of a client of EI is predicated on verification by the Commissioner concerned.

It is quite strange when information like name, CNIC, date of birth, residential address, business address, mobile phone number, landline number, electricity/gas reference numbers, particulars of landlord including NTN/CNIC, bank accounts details, email address, signature with thumb impression, is needed for the issuance of NTN and the whole system of submission of applications, verification of data/documents is under the command and control of the FBR, how and why CNIC of some citizens have been misused by some rogue elements; Waheed added.