KARACHI: The Post Clearance Audit (PCA) South has exposed a massive financial fraud involving a phantom company that illegally transferred over Rs. 200 million abroad while evading Rs. 140 million in duty taxes under the Export Facilitation Scheme (EFS).
The investigation, spearheaded by DG PCA Chaudhry Zulfiqar Ali and Director PCA South Sheeraz Ahmed, revealed that this non-existent company had fraudulently obtained EFS authorization to orchestrate the scheme.
Acting on a tip-off, PCA audit teams conducted site visits at two alleged business locations in Karachi and Lasbela, Hub district. Both addresses were found to be occupied by legitimate businesses that confirmed this ghost company had never operated at these locations.
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The investigation further revealed that the perpetrators had registered a false Karachi address on their National Tax Number (NTN) and Sales Tax Registration Number (STRN) certificates.
Despite being registered in Karachi, the company mysteriously obtained EFS authorization from the Customs Collectorate of Gwadar using a fictitious address in Lasbela, Hub, which was not listed on their official documentation.
Meanwhile, the WeBOC data showed that while the company never conducted any exports after receiving EFS authorization, they imported goods worth Rs 208 million under the scheme, leading to tax evasion amounting to around Rs 140 million.
The documents said that this ghost entity managed to transfer Rs 208 million abroad despite showing minimal financial worth in their income tax returns. The PCA South has now filed an FIR and formed two specialized teams to track down the accused individuals and their accomplices. The Federal Board of Revenue (FBR) has expressed serious concern over the widespread misuse of the EFS regime and its impact on the national treasury.
“The FBR is intensifying its efforts to combat such tax frauds and will leave no stone unturned in protecting our national financial interests,” stated senior PCA officials, adding that the Chairman FBR and his team have reportedly doubled down on their commitment to bring the perpetrators to justice and deter future attempts at tax evasion.
The investigation is underway and authorities are working to uncover the full extent of the network involved in this elaborate financial deception, they added.
Copyright Business Recorder, 2024
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