AGL 40.25 Increased By ▲ 0.09 (0.22%)
AIRLINK 130.40 Decreased By ▼ -1.33 (-1.01%)
BOP 6.69 No Change ▼ 0.00 (0%)
CNERGY 4.58 Increased By ▲ 0.11 (2.46%)
DCL 9.03 Increased By ▲ 0.21 (2.38%)
DFML 41.25 Increased By ▲ 0.64 (1.58%)
DGKC 84.85 Increased By ▲ 0.77 (0.92%)
FCCL 32.64 Increased By ▲ 0.30 (0.93%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.54 Increased By ▲ 0.19 (1.67%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.32 Increased By ▲ 0.01 (0.07%)
KEL 5.26 Increased By ▲ 0.04 (0.77%)
KOSM 8.87 Decreased By ▼ -0.11 (-1.22%)
MLCF 39.39 Decreased By ▼ -0.04 (-0.1%)
NBP 60.60 Increased By ▲ 0.31 (0.51%)
OGDC 195.00 Increased By ▲ 0.06 (0.03%)
PAEL 26.79 Increased By ▲ 0.10 (0.37%)
PIBTL 7.52 Increased By ▲ 0.04 (0.53%)
PPL 155.63 Decreased By ▼ -0.14 (-0.09%)
PRL 27.14 Increased By ▲ 0.46 (1.72%)
PTC 18.06 Decreased By ▼ -0.24 (-1.31%)
SEARL 82.26 Decreased By ▼ -0.76 (-0.92%)
TELE 8.36 Increased By ▲ 0.13 (1.58%)
TOMCL 34.68 Increased By ▲ 0.13 (0.38%)
TPLP 9.17 Increased By ▲ 0.36 (4.09%)
TREET 17.25 Increased By ▲ 0.55 (3.29%)
TRG 62.36 Decreased By ▼ -0.09 (-0.14%)
UNITY 27.60 Increased By ▲ 0.16 (0.58%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,384 Increased By 197.5 (1.94%)
BR30 31,501 Increased By 164.6 (0.53%)
KSE100 97,041 Increased By 1494.3 (1.56%)
KSE30 30,109 Increased By 530.8 (1.79%)

ISLAMABAD: Tax lawyers and the Federal Board of Revenue (FBR) have come at loggerheads with each other because of the arrest of a tax lawyer by the Directorate of Intelligence and Investigation (Inland Revenue), Hyderabad, in a case related to illegal input tax worth Rs10.01 billion.

The tax lawyer from Karachi was arrested on December 07, 2023, by the Directorate of Intelligence and Investigation (Inland Revenue), Hyderabad on allegations of involvement in claiming illegal input tax adjustment as well as issuing fake/flying invoices.

The arrested lawyer was presented before the Special Judge but court discharged him from the case on the first hearing.

The directorate on November 25, 2023 filed one FIR against 12 accused belonging to different cities of the country on the allegation of commissioning tax fraud under section 2(37) of the Sales Tax Act 1990. It was claimed that the accused are allegedly involved in claiming illegal input tax adjustment as well as issuing fake/flying invoices.

The accused declared supplies valuing Rs58.8 billion involving output tax Rs10.01 billion, adding the department claimed that all the supplies belonging to four persons declared fake and they did not exist at their declared business address. These accused used their sales tax registration number to pass on the fake input tax to actual beneficiaries without carrying out genuine business activity of sales and purchase.

Sources claimed that one of the Karachi-based units had already got bail from court and the tax department issued tax exemptions certificate to this unit also, apparently, negating the claim of the department that business addresses not existed.

On the other hand, advocate Gulriaz Ahmed Raza filed one application before the Civil Judge and Judicial Magistrate South Karachi against the I&I-IR Hyderabad as well as Karachi officials for misuse of powers and violation of the Lawyers Welfare and Protection Act 2023.

Subsequently, the Civil Judge and Judicial Magistrate South Karachi have directed officials of I&I (IR) Hyderabad to submit a reply on December 12, 2023 against the show cause for non-compliance.

Whereas, the directorate of I&I (IR) Hyderabad on 07/12/2023 applied for search warrant to inspect the places offices, No 201, second floor, Building No 4c, 6th Street, Badar Commercial, DHA Phase V, Karachi and office No 101, first floor, Plot No 26-C Street No 7, Badar Commercial DHA Phase V, Karachi and office no 01 Mezzanine Floor, Plot No 20-C, Street No 8 Badar Commercial DHA Phase V, Karachi, in connection with FIR No 02/2023 u/s 37-A, 37-B R/W 2(37) of the Sales Tax Act, 1990, of PS Directorate of I&I-IR Hyderabad for which this court issued you a search warrant for the said places mentioned above with directions to submit report thereof immediately after the execution of the same but still today you have not complied with the directions of this court. Therefore, you are hereby given show cause as to why action as per law should not be taken against you.

Copyright Business Recorder, 2023

Comments

Comments are closed.