Islamabad: The Federal Board of Revenue (FBR) Inland Revenue (IR) intelligence wing has unearthed Rs 134.453 million huge sales tax evasion scam in Faisalabad.
According to information, the Directorate of Intelligence & Investigation Faisalabad has unearthed a huge sales tax evasion scam and also arrested the owner of the company.
The directorate has arrested Syed Muhammad Azhar, owner of M/s Fazal Awais Textiles, involved in tax fraud by way of issuing fake and flying invoices to a non-existent unit, M/s Arrow International.
Accordingly, tax fraud proceedings against the sales tax fraudsters have been initiated and the First Information Report (FIR) has been lodged against M/s Arrow International, its buyers, suppliers, and other beneficiaries under section 37A of the Sales Tax Act, 1990.
The Investigation revealed that M/s Arrow International is a non-existent dummy unit that had been registered by the fraudsters for the purpose of issuance/adjusting fake/flying invoices and to facilitate buyers and suppliers to avoid payment of due sales tax, including further tax.
Moreover, 65 registered persons also declared fictitious purchases to avoid the payment of due tax. These 65 registered persons have evaded further tax amounting to Rs 134.453 million.
Given the facts, the tax fraud case under section 37A read with section 2(37) of the Sales Tax Act 1990 has been registered against the firm M/s Arrow International, its buyers, suppliers, and other beneficiaries involved in defrauding the national exchequer from a tax revenue of Rs134.453 million.
Officials said that the Chairman Federal Board of Revenue (FBR) has issued directions to all the FBR Field offices to expedite operation against tax evaders and play an active role to stop the menace of fake and flying invoices. FBR Headquarters has further explained that all the people who are found involved in fake and flying invoices and causing tax evasion will be dealt with strictly in accordance with the law. The organization will also take prompt action against its own employee if the employee is found involved in crime.
FBR has also encouraged the people to come forward and reveal the identity of the people who are involved in causing tax evasion by using fake and flying invoices. FBR will grant reward to such whistleblowers under its Reward Rules. The names of the whistleblowers will be kept secret, officials added.