Tax evasion: two foreign IT firms' officials held

The Directorate General of Intelligence and Investigation Inland Revenue (IR) on Thursday arrested two high-profile executives of an international IT giant in Karachi, selling computer products and accessories on alleged involvement in tax evasion. Sources told Business Recorder here on Thursday that it was the first of its kind of case where the directorate has successfully nabbed senior executives of a top IT company. The agency has taken action against the local office of the international IT company.
The DG I&I IR Islamabad has send a special team of intelligence officers to Karachi to arrest the involved employees. Hassam, Assistant Director DG I&I Islamabad, registered an FIR against the company in Islamabad, took arrest warrants and specially went to Karachi. On Thursday, he arrested country manager and marketing head of the said IT giant. Both the employees of the company would be presented before the Special Judge Customs Karachi on Friday (April 4). At present both the accused are in lockup at Clifton police station.
Details of the case revealed that the directorate of intelligence IR has directed two big IT companies to share information about their supplies of computers and accessories etc made to ABS Company against whom tax evasion case has already been registered. One of the big companies has given the necessary information to the directorate whereas the second company was reluctant to provide the data of supplies.
The information included details of items sold and actual price on which such supplies were made. When the agency was in process of collecting record, the criminal connivance of the local management of the IT Company was unearthed. The directorate is not alleging international company but their local Pakistani management is allegedly involved in the case. The non-co-operation of the company and their refusal to provide information points towards their connivance in tax evasion. Moreover, the non-production of record further revealed that the company has sold computer products to the buyer on under-stated price to accommodate local purchasers to evade taxes, official added.