KARACHI: Post Clearance Audit (PCA) South has uncovered another Export Facilitation Scheme (EFS) and money laundering scam, involving tax evasion of Rs478 million.
During a physical inspection on December 18, investigators discovered the illegal removal of lead ingots worth Rs. 1 billion intended for export, violating EFS Rules and causing duty tax evasion of Rs. 337 million.
The company, which is also reportedly involved in fake refunds scam, also misused its manufacturing status to claim undue tax exemptions, leading to additional evasion of Rs. 141 million.
PCA South uncovers Rs340m tax fraud
The audit revealed the company lacked proper manufacturing facilities for their declared import volume, suggesting procurement of goods from unregistered local markets to falsify exports under EFS. The PCA has initiated a money laundering investigation due to import volumes inconsistent with the company’s financial standing.
PCA South has now filed an FIR under Section 32A of the Customs Act against company’s two directors. One of the directors, identified as a ringleader of a tax evasion syndicate in the lead ingots sector, has previous cases with IRS and FIA for fake invoicing and money laundering.
PCA officials said that the Federal Board of Revenue (FBR) has intensified efforts to combat such frauds, with Chairman FBR and Member Customs committed to taking stern action against export facilitation scheme misuse.
DG PCA Dr. Zulfikar Ali Chaudhry had directed the investigation, which was carried out under PCA South Director Sheeraz Ahmed following intelligence about suspicious activities at this fake unit.
Copyright Business Recorder, 2024
Comments