The Federal Board of Revenue (FBR) has uncovered a network of tax fraudsters involved in issuing fake sales tax invoices, resulting in a loss of Rs21.69 billion to the national exchequer.
Dawn reported that the FBR’s Directorate of Intelligence and Investigation Karachi and Hyderabad filed FIRs against Rehman Enterprises for tax fraud of Rs10 billion and ZA Impex for Rs11.69 billion under the Sales Tax Act 1990.
The tax fraud was committed in the supply chain of Rehman Enterprises and 12 other accused persons, including a so-called director of Top End Metal Industries, were nominated in the FIR.
The physical verification of Top End Metal confirmed that the unit is unavailable at its declared address. The records and data of Top End Metal, and other companies allegedly involved in the illegal activity of fake sales tax invoices were retrieved.
Data found in laptops recovered during the search indicates that a large number of paper-based firms involved in fake invoices are actively operating from the said premises.
It was discovered that organised groups were involved in creating fake units and issuing fraudulent sales tax invoices. Subsequently, the Financial Monitoring Unit (FMU) confirmed the scam by issuing detailed Financial Intelligence (FI) reports.
The FMU stated that fake units were established and registered in the names of low-paid employees. According to the FBR report, Gulraiz Ahmed Raza is the main person leading the organized groups.
Ahmed is a former employee of the FBR sales tax department. He was first suspended on corruption charges and was later dismissed from service on Jan 7, 2022. The FBR competent authority also turned down his departmental appeal.
An official announcement by the FBR stated that to delay the proceedings and influence the inquiry, the accused lodged many complaints against the officers of the Directorate General of I&I-IR on various forums.
Recently, a private complaint was filed in the court of Special Judge Central-I, Lahore, levelling allegations against the DG I&I-IR and other officers, which the Lahore High Court suspended on June 3.
The statement said the FBR and its field formations are committed to apprehending and prosecuting individuals involved in tax-related fraudulent activities. By holding the fraudsters accountable, billions of rupees in revenue will be safeguarded, fostering a fair environment for genuine taxpayers.
