ISLAMABAD, Jan 24: The Central Board of Revenue is to brief the Ad hoc Public Account Committee (PAC) on the legal status of common pool fund (CPF) later this month.

The PAC had earlier termed the CPF as illegal and directed the CBR chairman to clarify the status of the fund.

According to reliable sources, the CPF is not yet registered as a trust or a welfare foundation because the customs authorities were regularly paying income tax on it.

The customs officials also made a move to allow exemption on the CPF income, but reportedly it was turned down by the then CBR chairman, although he himself was an official of the customs group.

The source claimed that around Rs10.5 million was deposited as income tax on the CPF income with the government.

The source questioned that if the tax alone is around Rs10.5 million then what would be the quantum of money lying there.

When contacted, a senior customs official, requesting not to be named, said CPF was a staff welfare fund, where 20 per cent of the profit of sale proceed of goods confiscated are deposited, which was approved by the competent authority.

The official said the Preventive Collectorate, Karachi, was the biggest collectorate in the country and has deposited around Rs150,000 in the common pool fund.