Tax evasion: 453 fake registered persons detected

KARACHI: Directorate Intelligence and Investigation, (DI&I) Inland Revenue Karachi has detected around 453 fake registered persons, who were reportedly involved in Rs 5.6 billion tax evasion.

According to sources, the DI&I-IR, Karachi under the supervision of its Director Hyder Ali Dharejo has kicked off a crackdown against tax mafia, who were involved in providing serious financial shocks to the kitty through fake/ flying tax invoices.

During the said exercise, the Directorate has detected 453 bogus registered persons belong to the said tax mafia. The sources said that they evaded the tax amounting to Rs 5.6 billion through fake/flying invoices and added that the Directorate also recommended the authority concerned to blacklist all these bogus registered persons in order to avoid further revenue losses.

Moreover, sources said that the DI&I-IR, Karachi also planned to initiate organised investigations against tax evaders of various sectors including, currency exchange sector, soap toiletries and perfumery sector, cement sector, food sector, plastic sector, iron and steel sector, tobacco, real estate sector etc beside acceleration of enforcement activities including suspension and blacklisting of registrations, investigations against tax evaders during ongoing financial year. For the purpose, the cases have already been identified, sources maintained.

A large number of importers of perfumery, cosmetics, toilet soap, electronic appliances and computers etc were also caught on account of misinformation and sales suppression of imported items at local market.

In addition, the directorate, which is also striving to make recoveries of evaded taxes from 'High Net-worth Individuals' including fashion designers, sports persons, doctors, showbiz celebrities and other professionals, has established 25 cases during current fiscal year involving a revenue to the tune of Rs 577 million. Sources further said that out of total 25 cases, investigation on 21 cases were finalised and the reports in this regard were sent to concerned tax authorities for the recovery of Rs 442 million.

The DI&I-IR, which was recently empowered under Anti Money Laundering Act (AMLA), 2010, has established over 20 such cases including illegal remittance of foreign currency out of the country, concealment of real consideration and real beneficiaries who are either not registered with FBR or paying meagre taxes, bank transactions not commensurable with tax profile or declared versions of the taxpayers/non taxpayers and use of Benami accounts for tax evasion/ money laundering or parking of ill-gotten money.

They said that investigations against a renowned manufacturer of household electrical appliances were underway and an FIR against the offenders under AMLA and Income Tax Ordinance, 2001 was already lodged under Special Judge (Taxation), Karachi for evasion of Rs 2.42 billion.

They said that around Rs 20 billion pertaining to the said manufacture lying with different banks have also been frozen under the order of Trial Court and added that the said manufacture now filed an application in FBR agreeing to pay the evaded amount.

When contacted, Director I&I-IR, Karachi, said that he and his team members were doing all efforts to grab the habitual tax evaders and unscrupulous persons and hoped to produce maximum results with limited resources.