FBR busts gang involved in tax fraud

The Directorate of Intelligence & Investigation, Inland Revenue (IR), Faisalabad on Wednesday busted a gang involved in tax fraud and arrested its three key members, who caused massive loss to the national kitty. Sources told Business Recorder that the extensive use of fake and flying sales tax invoices had been done for claiming illegal input tax adjustment and refund to evade the authorities.
Details revealed that a unit in the name and style of M/s Five Industries, Multan got registered in Sales Tax Department as Importer/Service Provider with Regional Tax Office, Multan on fake documents and issued fake and flying invoices to the different registered persons in different cities. This registered person namely M/s Five Industries claimed illegal input tax adjustment to the tune of Rs 73,940,973 on the strength of sixty seven fake bills of entries. On the strength of these fake declarations, M/s Five Industries issued fake invoices to 76 registered persons enabling them to get illegal input tax adjustment/credit and refund. Major units who got illegal input tax adjustment/credit are M/s Shaheen Gatta Factory, Gujranwala, M/s Al -Hussain Paper and Board Mills, Gujranwala, M/s Inter Wood Mobel (Pvt) Ltd, Karachi, M/s M.B. Dyes Chemicals and Silk Industry (Pvt) Ltd, M/s Elahi Paper Mills, Sheikhupura, M/s Salman Enterprises (Pvt) Ltd, Faisalabad, M/s Hassan Board Industries, Murridke and others.
The Directorate of Intelligence & Investigation IR, Faisalabad registered an FIR (No 04/2013) and arrested Ikhlaq Haider from Faisalabad on whose name the above referred unit was registered. On his pointation, another accused was arrested who connived the tax fraud. During investigation, about six member gang of tax fraudster was unearthed who registered unit and issued fake invoices to the tune of Rs 73 million to other registered person and caused loss to national exchequer. Raids are also being conducted to arrest the other accused. Investigation in the case is under way. This Directorate has also arrested another person namely, Ghulam Yasin, owner of M/s Pakeeza Traders, Faisalabad. This unit has made fake purchases about Rs 1300 million. The court of special judge (Customs, taxation and anti-Smuggling), Lahore has granted five days physical remand of the three arrested persons.