FBR takes action against biscuit company for tax evasion of over Rs4bn

ISLAMABAD: The Federal Board of Revenue’s (FBR) directorate of Intelligence and Investigation (IR), Lahore has carried out action against M/s Innovative Biscuits Pvt. Ltd. after receiving information related to sales tax fraud.

Officials privy to the matter said that an amount of Rs4.27 billion as sales tax, along with default surcharge and 100 per cent penalty for tax fraud was imposed on the person, Sheikh Munir Hussain, under whom the company is registered.

Hussain, one of the directors of Innovative Biscuits was arrested whereas two bail applications filed by him were rejected by a special judge as the directorate presented evidence supporting their claim.

Subsequently, the accused filed another application for bail before Lahore High Court (LHC) after which LHC Rawalpindi Bench granted post arrest bail to the petitioner on the deposit of Rs300 million and submission of a postdated cheque of Rs100 million.

The legal process against the accused is currently underway.

It may be noted that during the current financial year (FY21), the directorate general has forwarded 653 Investigation reports involving revenue of Rs197,714 million to field formations, besides conducting 40 raids where an estimated revenue amounting to Rs761 million is involved, and also filed 67 complaints against 75 accused persons involving Rs55.385 million under the Anti-Money Laundering Act, 2010.