51 spinning mills facilitated: gang of tax cheats busted

The Directorate of Intelligence & Investigation-Inland Revenue, Faisalabad has busted an organized gang of tax fraudsters in textile sector involved in facilitating 51 spinning mills to avoid sales tax payment on supply of textile products in violation of SRO1125(I)/2011.
Sources told Business Recorder here on Monday that Directorate of Intelligence & investigation has initiated campaign against the tax fraudsters and this time, a network of tax fraudsters and their facilitators have been identified in textile sector and an accused Naveed Iqbal has been arrested from Montgomery Bazar, Faisalabad. According to details, an inquiry was conducted by Directorate of intelligence & investigation -Inland Revenue, Faisalabad, which revealed that M/s Rehman Textile Mills, Faisalabad is involved in tax fraud by way of adjusting bogus purchases to facilitate 51 spinning mills to avoid the payment on supply of textile goods violating the provision of SRO 283 (I)/2011 as amended vide SRO 1125(I)/2011.
Data, ie, sales tax returns along with annexure and sale/purchase summary of the said textile mill of Faisalabad reflected huge suspected transactions of Rs 762.643 million. The suppliers of the said mill have been summoned to justify the genuineness of their sales as provided under SRO. 283(1)/2011 dated 01.04.2011. Some of the supplier provided the record along with the bank statement. These bank statements when examined revealed that the involved person of said mill operated bank accounts to justify the bogus transactions. He opened accounts in two bank branches in Faisalabad.
Sources said that scrutiny of banking transactions proved that the bogus bank accounts were opened just to facilitate the suppliers of the said textile mill to avoid the due payment. The information provided by the bank and suppliers of the registered person has revealed that following persons were committing tax fraud in the name of textile mill.
It was revealed that a gang of fraudster is involved in the fake transactions and tax frauds. FIR No 02/2014 was registered against the textile unit, Naveed Iqbal and Suppliers of said mill and beneficiaries/others involved in tax fraud. The partners of said mill were arrested three months ago and are on bail.
A total of 51 units benefited from the tax fraud and were found involved in the fake business transactions. Team of the Directorate of Intelligence & Investigation-Inland Revenue, Faisalabad under the supervision of Muhammad Azam Director and Asif Rafique Deputy Director is conducting raids to make arrests of the involved person; this is the second arrest in a week's time by the Directorate, haunting fraudsters who are eating sales tax of the country through criminal activities.