ST fraud case: RTO Faisalabad recovers Rs 100 million

The Regional Tax Office (RTO) Faisalabad has recovered a huge amount of Rs 100 million in a mega sales tax fraud case and expanded the scope of investigation against the entire supply chain to arrest all those involved in the scam. Sources told Business Recorder on Tuesday that it is a unique case where a huge amount of evaded sales tax has been recovered from a gang of fraudsters. Out of the tax demand of Rs 439 million, the investigators of the RTO Faisalabad have been able to recover Rs 100 million.
This is one of the historic cases where prompt recovery has also been made. Usually, the actual amount of recovery is far low in mega tax fraud cases or big scams where huge demands have been raised in the past. Contrary to this, an amount of Rs 100 million has been recovered from the fraudulent company. The company, engaged in manufacturing of branded and non-branded products of silicon etc, has been involved in issuance of fake/flying invoices, suppression of sales and misuse of sales tax SRO.1125. The company has also been involved in using Benami bank accounts in names of its employees and directors to evade sales tax and conceal the actual income.
On the special instructions by the newly appointed Chief Commissioner RTO Faisalabad Tasnim Rehman and Commissioner Zone-I Nasir Khan, the RTO has taken strict action against companies involved in tax frauds and specifically pursued this mega tax fraud resulting in prompt recovery of Rs 100 million.
Details of the case revealed that the sales tax of Rs 100 million was recovered during physical remand of the accused involved in the tax fraud case. Earlier FIR No 6/2015 was lodged on 28.1.2015 in I&P Police Station, RTO, Faisalabad against GMSA Industries (Pvt) Ltd, in sales tax mega tax fraud case of Rs 439 million. Muhammad Arshad & Muhammad Akram both directors of the said company are arrested by Afzal Malik, Assistant Commissioner Investigation & Prosecution and presented before the Special Custom Court, Lahore and Judge granted four days physical remand. One to two days back, both the accused were sent to jail on judicial remand. In a new development on Tuesday, in spite of depositing further Rs 10 million in court even then bail of both accused were dismissed by Abdul Rashid, Judge of Special Custom Court, Lahore in case of FIR No 6/2015.