Tax evasion: Raids conducted against unregistered business entities dealing in cloth

Directorate of Intelligence & Investigation (Inland Revenue), Faisalabad has conducted two separate raids in the Kachehry Bazaar and Madina Town areas of the city resulting in detection of massive evasion of tax by unregistered business entities dealing in cloth.
Sources told Business Recorder here on Tuesday that the intelligence-based operation was carried out by a team of Directorate officials led by Deputy Director Tariq Javed and was supported by police.
Two premises of M/s Shaheen Fabrics (one shop and one godown) and one godown of M/s Nayab Fabrics were raided with proper approval of higher authorities.
During the raids, records and registers along with computers were recovered and the initial examination indicates huge evasion of sales tax which may culminate into recovery of tax in several millions of rupees. The counting of stocks done on the spot revealed that large quantities of fabric and finished cloth were being traded without any registration or payment of due tax. The count of "Thans" of fabrics runs into thousands.
Directorate sources informed that the raids have been conducted as per instructions of FBR whereby a "zero-tolerance" policy against non-registered sectors and fraudsters has been envisaged.
Sources concluded that the exercise to bring the unregistered persons into tax-net and unearthing the cases of tax evasion and fraud will continue, they added.