Alleged tax evasion: two top executives of IT firm being interrogated

05 Apr, 2014

The Directorate General of Intelligence and Investigation Inland Revenue (IR) Islamabad has flown both the high-profile executives of an international IT giant from Karachi to Islamabad for interrogation on their alleged involvement in a case of tax evasion.
Sources told Business Recorder here on Friday that the directorate of intelligence IR has presented the senior employees of the company before the Special Judge Customs, Karachi. The Special Judge has given remand of the accused and handed them over to the agency for further investigation. The directorate of intelligence IR has brought both the high-profile employees of the company from Karachi to Islamabad. On Saturday, the directorate would start interrogation of the accused employees of the company involved in tax evasion. The agency would complete investigation in the light of the interrogation to be conducted in the federal capital.
According to sources, all legal formalities have been duly followed from arrest to remand of the high-profile employees of the company. The company has been engaged in trading of computer equipment with Pakistani suppliers, but it has not made any direct investment in Pakistan.
During the criminal process, the company was bound to provide all the relevant evidence pertaining to the case. But instead of co-operating with the agency, they concealed the information, which hindered the criminal prosecution. Moreover, the independent evidence collected by the agency proved that they were involved in tax evasion in criminal connivance with the supplier.
The directorate of intelligence IR has framed two charges against the company officials. Firstly, they failed to provide the necessary evidence of their supplies to the agency. Secondly, they in criminal connivance with the buyer company were allegedly evading taxes. They have adversely impacted the criminal prosecution due to non-compliance and non-co-operation with the directorate.
The directorate of intelligence IR had directed both the big IT companies to share information about their supplies of computers and accessories, etc, made to a buyer in Islamabad. One of the big companies has given the necessary information to the directorate whereas the second company was reluctant to provide the data of supplies made to buyer. The information included details of items sold and actual price on which such supplies were made. When the agency was in process of collecting record, the criminal connivance of the local management of the IT company with the buyer was unearthed.
The directorate is not alleging international company but their local Pakistani management is allegedly involved in the case. The non-co-operation of the company and their refusal to provide information points towards the connivance in tax evasion. The non-production of record further revealed that the company has sold computer products to the buyer on understated price to accommodate local purchasers to evade taxes, they added.

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