LAHORE: The Lahore High Court on Tuesday stopped the Federal Board of Revenue from auditing the finances of JDW-Group, a conglomerate owned by estranged Pakistan Tehreek-e-Insaf leader Jahangir Tareen.
The court took up a request filed by Tareen against the audit notice and issued a restraining order to the tax collector. It also sought a response from the body.
Nominating the bureau and others as respondents, Tareen informed the court the FBR had sent a notice to his business on May 21 seeking income tax-related documents and records from the tax year 2015.
However, the FBR does not have the authority to conduct an audit after the passage of five years, the petition further contended.
The 2015 tax year has passed. Therefore, the notice has become illegal and should be declared null and void, the petition requested.
The court was requested to direct the FBR from taking disciplinary action.
In March, the Federal Investigation Agency registered two cases against Tareen and his son Ali Tareen on charges of corporate fraud and money laundering.
The cases were registered under sections 406 (criminal breach of trust), 420 (cheating of public shareholders), and 109 of the Pakistan Penal Code — with sections 3 and 4 of the Anti-Money Laundering Act, 2010 — on March 22.
One of the cases claims Tareen transferred Rs3.14 billion from the accounts of his JDW-Group to Faruki Pulp Mills Limited, a company said to be owned by his son and a relative. The money was then transferred to the accounts of his family members.
Likewise, the second complaint says “voluminous withdrawals amounting to at least Rs2.2 billion were fraudulently and dishonestly made through a trusted cash rider”.
Tareen had returned to Pakistan in November after ending his seven-month-long self-imposed exile after falling out with Prime Minister Imran following an inquiry into the last year’s sugar scandal that accused several sugar producers — including him — of “underreported sales and fraud”.
At the time, Special Assistant to Prime Minister on Accountability Mirza Shahzad Akbar had declared sugar-producing units under Tareen’s JDW-Group were found guilty of “double billing” and “over-invoicing” as well as “corporate fraud”.
Tareen had rejected the findings of the Sugar Inquiry Commission. “I am shocked at the kind of false allegations levelled against me. I have always run a clean business. All Pakistan knows I always pay full price to my growers,” he had said in a tweet.
“I DO NOT maintain 2 sets of Books. I pay all my taxes diligently. I will answer every allegation and be vindicated IA.”
Those who do good for this land of pure undergo the same treatment that Tareen is being meted out.