The Federal Board of Revenue (FBR) has detected tax evasion worth Rs898.4m by a Lahore-based wholesale/retailer over a period of five years. The accused had been suppressing sales data of tyres and tubes between 2011 and 2015, hence manipulating income figures.
The government, in 2013 had introduced additional sales tax of 2pc of the value of supplies of several goods, including tyres and tubes. The investigation disclosed numerous cases of non-payment of additional tax in the tyres and tubes sector.
Furthermore, instances, where supplies were made without getting the sales tax registration during 2010 and 2015, were also unfolded.
Between July 2010 and October 2015, it parked Rs1.43 billion in 14 declared/undeclared bank accounts on account of concealed sales proceeds with outstanding tax liability amounting to Rs254.52m.
The observation was supported by the average daily sales figures recorded at Rs866, 836. Over a 5 year span, it would amount to approximately Rs1.5b.
In addition to the sales tax liability of Rs254m, the income tax liability, including the penalty and default surcharge, stands at Rs644.38m taking into account tax years 2011-15.
Investigation reports have been sent to the concerned tax office for a final ruling on the matter and subsequent recovery.
