ISLAMABAD: The Federal Board of Revenue (FBR) has initiated a probe against car dealers on the credible information of bogus sales transactions of vehicles.
The matter was taken up by the FBR when the Board’s Anti-Benami office, on the recommendation of the Intelligence and Investigation wing of the Inland Revenue, directed a Karachi-based Suzuki car dealer to explain his position in the alleged benami business of luxury vehicles.
According to sources, the Karachi-based car dealer had allegedly registered a number of vehicles in the name of a KP-based person.
The complainant in the case had requested to investigate the matter as his National Tax Number (NTN) and Computerised National Identity Card Number (CNIC) were misused by an unknown person.
The Suzuki car dealer has, allegedly, illegally, sold out vehicles amounting to Rs31.08 million in the complainant’s name using his identification documents, without consent.
“The transactions completed in this manner are a loss to the state revenue and me,” the complainant alleged.
“I am a filer/taxpayer and deserve the right of withholding tax. However, the Karachi-based car dealer apparently got the tax relief illegally showing me as the purchaser,” he added.
Sources said that car dealers around the world are bound to implement customer due diligence (CDD) procedures, besides establishing appropriate risk management systems to identify customers whose activities may pose a high risk of money laundering and financing terrorism.
Interestingly, there are no CDD procedures for Pakistani car dealers due to which misuse of identification documents related complaints surface.
Profit approached Pak Suzuki Motor Company Limited for comments on the matter but no reply was received till the filing of the story.