ISLAMABAD: The Federal Board of Revenue has registered a First Information Report (FIR) against a Karachi based company on account of huge sales tax fraud worth Rs 314.8 billion.
Documents state that the Regional Tax Office-I, Karachi has lodged an FIR against m/s KH & sons and others on account of huge sales tax fraud. The police is trying its best to locate mastermind Owais Ismail.
The perpetrators behind “KH & Sons” cunningly presented fictitious operations in the Iron & Steel industry, through benami accounts. The company purportedly operated out of multiple addresses, including Liaqat Market, Asgeri Market, and M.A Jinnah Market in Karachi.
During the scrutiny of the registration profiles of KH & Sons for the tax return of the period Feb-2023 to Aug-2023, it was revealed that they had gotten sales tax registration dated 2nd March and declared a huge purchase amounting to Rs 1,748 billion involving sales tax amounting to Rs. 314.8 billion in the month of April-2023.
The bogus input tax amounting to Rs. 314.8 billion was created by buyer (M/s KH & Sons) in connivance with the supplier (M/s Mohson Traders & M/s Sales Promoters). Subsequently, KH & Sons evaded taxes on supplies amounting to Rs.1,732 billion, causing the loss of Rs. 314 billion to the national exchequer.
The details of buyers and suppliers involved in the supply chain have already been shared with the concerned field formations with the request to take actions in accordance with law against the registered persons. Moreover, KH & Sons and Mohson Traders have been blacklisted under section 21(2) of Sales Tax Act, 1990 and Rule 12 of the Sales Tax Rules, 2006.
Sources said that the FBR team during their investigation found three different Law Firms including Bilal Hameed & Co, Beacon Law Associates and Ubaid Law Associates on their given addresses and all the three tax consultants were present.
Ubaid Khan has confessed that the returns of accused firm M/s. KH & Sons was filed by his employee named Hamm Javed on his direction while he was in Saudi Arabia for the performance of Umrah. He further stated that the data pertaining to the said firm was provided to him by Owais Ismail for filing of Sales Tax Returns.
Sources said that FBR is trying its best to locate main mastermind Owais Ismail as he has shifted his office to some other place.
