ISLAMABAD: Federal Board of Revenue (FBR) Chairman Javed Ghani on Saturday directed all FBR field offices to expedite operation against tax evasion.
A statement issued by FBR said that people found involved in fake/flying invoicing and tax evasion will be dealt with strictly in accordance with law.
The tax authority said that the organisation will also take prompt action against its own employees who are found involved in criminal activities.
In accordance with the directives issued by the FBR chairman, the Directorate of Intelligence and Investigation (Inland Revenue) Faisalabad arrested owner of Fazal Awais Textiles Syed Muhammad Azhar who was found involved in tax fraud by issuing fake and flying invoices to a non-existing unit named Arrow International.
The directorate has also unearthed a sales tax evasion scam of millions of rupees related to issuing and adjusting fake and flying invoices.
Accordingly, a tax fraud investigation against the culprits has been initiated and a First Information Report (FIR) has been lodged against Arrow International, its buyers, suppliers and other beneficiaries under Section 37A of the Sales Tax Act, 1990.
The investigation revealed that Arrow International is a non-existent entity, which had been registered for the purpose of issuing fake/flying invoices and to facilitate buyers and suppliers to avoid payment of due sales tax.
Moreover, 65 registered people also declared fictitious purchases to avoid payment of due taxes. These 65 registered people have evaded tax amounting to Rs134.453 million.
As a result, a tax fraud case under Section 37A read with Section 2(37) of the Sales Tax Act 1990 has been registered against Arrow International, its buyers and suppliers and other beneficiaries.
The FBR has urged people to come forward and reveal the identity of those involved in tax evasion. The tax authority said that it will grant reward to such whistle blowers under its Reward Rules while keeping the name of the whistleblower hidden.
