ISLAMABAD, July 23: A case relating to alleged Rs47 billion tax evasion by five telecom companies took a significant turn on Monday when the National Accountability Bureau recommended that the names of three senior officials of the Federal Bureau of Revenue be placed on the exit control list (ECL).

According to NAB’s spokesman, the names of former chairman of FBR Mumtaz Haider Rizvi, member Inland Revenue Shahid Hussain Asad and chief of sales tax/FED department Abdul Sattar Aora have been forwarded to the interior ministry.

On July 4, NAB Chairman Admiral (retd) Fasih Bokhari had taken notice of the reported evasion and asked Mumtaz Rizvi to appear in person and explain the default.

Mr Rizvi appeared in person and endorsed NAB’s opinion that cellular companies were evading tax.

Meanwhile, NAB asked the FBR’s new chief to implement a four-point agenda: 1) No waiver whatsoever will be granted to cellular companies on grounds of interconnect charges; 2) He (FBR chairman) will depute his lawyer to get the stay vacated by producing before the court evidence provided by NAB; 3) He will approach the NAB if the necessity of recovery arises and; 4) Expressed a commitment to work closely with NAB in larger interest of safeguarding the national exchequer.

NAB officials claimed that the bureau’s timely intervention had prevented the FBR from granting a waiver on Rs47 billion tax evaded over the past four years.

NAB asked representatives of the National Telecommunication Corporation (NTC), Mobilink, Warid, Telenor and Paktel/Zong to record their statements. It also constituted a committee comprising director general operations, director special operations and a senior baking officer of NAB to look into the matter.

FBR’s member inland revenue, member administration and chief sales tax already appeared before the inquiry team and recorded their statements which were found unsatisfactory and they had been restrained from signing the waiver notification. The NAB authorities were informed that these officials were trying to issue a subject waiver despite the bureau’s restraining order.

NAB officials asked the former FBR chief on what grounds he was considering giving the tax waiver to the cellular companies amounting to more than Rs40 billion (Rs26 billion principal amount, default surcharge and penalty) based on interconnect charges.

He tried to convince the inquiry committee that the waiver was in line with the law. But when he was confronted with evidence and supporting documents, he thanked NAB for intervening timely and providing him guidance to safeguard the interests of the national exchequer and of the FBR.

The NAB spokesman accused the cellular companies of evading tax since 2007. FBR tax auditors took notice of the matter in 2010. When the FBR asked the companies to pay the tax, they moved to the commissioner inland revenue who also ordered them to make the payment.

The companies then approached the Appellant Tribunal Inland Revenue which gave a decision in favour of interconnect charges.

After that the companies submitted to the chief commissioner (large tax unit) an application saying that they were ready to pay tax from July 1, but requested him to waive the tax of last four years because it had happened inadvertently.