Directorate of Intelligence and Investigation Inland Revenue (IR) Lahore has decided to investigate tax evasion in leading industries like sugar, ghee and cooking oil, steel along with wire and cable sectors. Sources told Business Recorder here on Tuesday that the DG I&I IR, Lahore has chalked out a strategy (2012-2013) with special focus on detection of tax evasion in major sectors of the economy.
A contravention report of sales tax and income tax evasion of Rs 7,390.619 million has already been framed against a leading soft drink manufacturer registered with the Large Taxpayer Unit Lahore. DG I&I IR Lahore has informed the Directorate General Intelligence and Investigation, Inland Revenue (IR) FBR that the agency has started investigation against textile and leather sector to check misuse of zero rating facility under SRO-283. The regional directorate would also focus on evasion prone areas in edible oil and vegetable ghee sector. In case of sugar sector, the agency would start an exercise to ascertain the real volume, actual tax potential and on the ground tax contribution of this vital sector. The possibility of tax evasion in sugar sector would be part of the investigation of the agency.
The directorate would also investigate sales tax payment in cases of steel sector under special procedure. The audit of cases under normal procedure within the steel sector would also check any possibility of tax evasion. Within the wire and cable sector, the agency would investigate inadmissible input tax adjustment on basis of fake and flying invoices issued by dummy units.
The performance of the DG I&I IR Lahore during (2011-12) revealed that a total of Rs 11603.366 million has been detected in 54 different cases with a recovery of Rs 189.273 million during the period under review. In 10 cases FIRs were registered involving an amount of Rs 726.176 million whereas recovery of Rs 17.163 million has been made.
The 15 contravention reports were made involving Rs 3,391.522 million and recovery of Rs 4.593 million. The agency has detected six cases of fake imports involving Rs 106.869 million. Under 11 special initiatives of the directorate, an amount of Rs 7,329.009 million has been detected in various cases.
Out of 28 investigative audits initiated during 2011-12, a total of two cases were finalised by the agency as 26 cases are pending. A total amount of Rs 361.242 million has been unearthed during the investigative audit. The directorate has issued "Red Alerts" in 11 suspected refund cases involving an amount of Rs 1,103.776 million whereas the amount recovered stood at Rs 284.193 million during this period.
The DG I&I IR Lahore has made a contravention report against a leading Lahore-based soft drink manufacture involving sales tax of Rs 4,878.289 million. The directorate has also detected income tax evasion against the soft drink manufacturer involving Rs 2,512.329 million and report has been sent to Large Taxpayer Unit (LTU) Lahore for recovery of the evaded amount of taxes by the multinational company.
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