Owner of 11 immovable properties: I&I-IR investigating investment made by woman

In line with the government's policy to document high-net individuals/super rich persons, Directorate of Intelligence and Investigation Inland Revenue (IR) is probing the source of investment made by a female individual, who is owner of 11 immovable properties in Karachi.
Sources said that the case is related to the undeclared income, causing loss of revenue amounting to Rs 42, 497,610 by a female individual of Karachi, having National Tax Number. The agency has found that she is engaged in sale/ purchase of immovable properties and gain/loss on the sale of properties is adventure trade in nature and is liable to tax.
According to the information collected by the I&I-IR, the said taxpayer lady was involved in evasion of tax by declaring inaccurate particulars of her income. An exhaustive investigation led to discover various discrepancies in the returns of income filed by the taxpayer for the tax year 2012 and 2013. It came to light that the taxpayer declared business capital of Rs 7, 349,500 in a number of businesses but neither disclosed the names of such businesses nor declared any income there from.
She declared eleven (11) immovable properties, sources of which were never probed. The taxpayer declared miscellaneous loans, genuineness whereof needs to be determined. She is involved in sale/purchase of property but does not declare any gain from this activity. She also declared exempt incomes which call for a probe. There is a gross difference between credit transactions and cash inflows declared in the wealth statements for the tax years under consideration.
Investigation report of the agency has been sent to RTO-III, Karachi, for taking action u/s 122(5) read with section 111 of the Income Tax Ordinance, 2001 and retrieve the loss of revenue of Rs 42, 497,610, sources added. Investigation report revealed that the taxpayer is registered for income tax vide NTN since 14.3.2002 and has been declaring principal activities as other financial services. As per credible information available with this directorate, it revealed that the taxpayer has purchased immovable properties during tax year 2012 including a plot at beach street, Phase-8, DHA, 1000 sq yards, plot Phase-8, DHA, 100 sq yards, plot Phase-7, DHA, plot Phase-7, DHA, 120 sq yards.
During tax year 2012, the taxpayer has declared business capital amounting to Rs 7, 349,500 in various un-named businesses but no income was declared from the said businesses. The taxpayer has declared 11 immovable properties in the wealth statement as on June 30, 2012 amounting to Rs 41, 053,250 without description of the said properties, which needs to be matched with the properties purchased by the taxpayer during the tax year 2012.
The taxpayer has declared miscellaneous loans being liabilities payable at Rs 28,566,122, the genuineness of which also needs to be examined. The details of personal bank accounts when matched with the inflows in the wealth statement revealed differences. The amount needs to be probed into the hands of taxpayer and appropriate action as per law may be initiated.
In tax year 2013, the taxpayer has also purchased immovable properties. Beside immovable properties declared in the wealth statement as on 30.06.2013 wherein the taxpayer has sold two immovable properties declared in the wealth statement as on 30.06.2012, the taxpayer has purchased another immovable property bearing plot in 37th Street Phase-8 DHA measuring 1000 sq yards clearly reflects that the tax payer is engaged in sale/ purchase of immovable properties and gain/loss on sale of properties is adventure trade in nature and is liable to tax whereas the taxpayer has declared in the return of income about Rs 44 million exempt income which needs to be examined and appropriate action taken as per law.
Data further revealed that the taxpayer has in the return of income for the tax year 2013 declared exempt income amounting to Rs 9,500,000 as property income and Rs 34,999,000 from other sources, the genuineness of exempt income needs to be examined and appropriate action as per law initiated.
During tax year 2013 the taxpayer has declared business capital amounting to Rs 52,347,250 in various businesses; however, increase in capital amounting to Rs 44,998,000 has been declared in the wealth statement as on 30.06.2013 and no business income has been declared in the return of income in spite of increase in capital which needs to be examined and appropriate action as per law initiated.
The taxpayer has declared 09 immovable properties in the wealth statement as on 30.06.2013 with total value of Rs 37,503,350 without description of the said properties which needs to be matched with the property bearing plot 37th Street, Phase -8, DHA, purchased by the taxpayer during tax year 2013 and this property is apparently not declared in the wealth statement as on 30.06.2013 appropriate action as per law is required to be initiated
Further the taxpayer sold two properties, as declared in the wealth statement as on 30.06.2012, and they have not been declared in the wealth statement as on 30.06.2013 leading to the conclusion that the same was sold during tax year 2013; however, no gain or loss on sale of said two properties has been declared in return of income for tax year 2013, and appropriate action as per law is required to be initiated.
The taxpayer has declared miscellaneous loans being liabilities payable at Rs 33,508,572, the genuineness of the liabilities claimed needs to be examined. The comparison of above balances with the wealth statement as on 30.06.2013 reveals discrepancies. The amount needs to be probed into the hands of taxpayer and appropriate action as per law be initiated, sources added.