LAHORE: The Federal Board of Revenue’s (FBR) Intelligence and Investigation Inland Revenue (I&IIR) has arrested one of the major culprits, Muhammad Yousaf, responsible for running a racket that issued fake and flying invoices causing a huge loss of revenue to the national exchequer.
Speaking to Profit, an FBR official said that the directorate had unearthed the big sales tax evasion scam involving tax frauds worth millions of rupees after which it had initiated a crackdown on the criminals involved.
He said the directorate’s Faisalabad branch had arrested the proprietor of M/s Saytex International, Muhammad Yousaf, following which a first information report (FIR) was lodged against M/s Arrow International, its buyers, suppliers and other beneficiaries under section 37(a) of the Sales Tax Act 1990.
“The person arrested had issued fake invoices worth Rs104.446 million to M/s Arrow International and thus defrauded payment of due taxes thereon. Investigation Officer (IO)/Deputy Director Imran Zafar who arrested the accused has obtained physical remand of the accused from the Lahore Customs, Taxation & Anti-Smuggling Special Judge whereas the accused is currently under further investigation,” he added.
It is pertinent to mention here that two other members of the fraudsters’ network, namely, Arshad Mehdi and Muhammad Danish Javed were also arrested a few days earlier. Arshad Mehdi is the declared proprietor of a dummy unit, M/s Arrow International, in whose name five bank accounts were opened in Faisalabad and Lahore through which transactions of Rs.288 million had been affected. He is currently on judicial remand.
Similarly, Muhammad Danish Javed has been found to have deposited money in the bank accounts of the same dummy unit whereas an FIR for tax evasion amounting to Rs134.4 m has been lodged against him as well. The said person is also under judicial remand.
An investigation into the activities of the arrested persons had subsequently led the authorities to identify the real culprits behind a network involving 65 units and a total invoice value amounting to Rs1.3 billion.
The arrest of Muhammad Yousaf, proprietor M/s Saytex International, is in continuation of the Revenue Intelligence’s tirade against tax fraudsters and networks of dubiously registered firms involved in fake and flying invoices.
So far, the Faisalabad directorate has arrested six persons and recovered a defrauded amount of Rs6 million.
Another 13 registered persons nominated in the FIR have voluntarily deposited their tax liability totalling Rs2.2 million.
Further investigations into the scam are underway whereas further arrests and recoveries are expected.
FBR started doing good work.