Directorate General of Intelligence and Investigation Inland Revenue (IR), Islamabad, has detected tax evasion by an importer of DHA, Lahore, who is engaged in business of IT equipment and spare parts, etc. It is learnt that Directorate has found discrepancies in declared sales and import value in the sales tax returns and income tax returns etc and took action under section 38 of the Sales Tax Act, 1990.
The information gathered by I&I-IR transpired that the said person was allegedly involved in tax evasion. The inquiry revealed that he is a sole owner of the company, while he has also established an association of person (AOP) to manage the suppression of supplies. The taxpayer got registration as an importer and is engaged in the business of IT equipment and spare parts, etc.
As a result of analysis of business transactions, discrepancies between the declared sales and import value in the sales tax returns as well as income tax returns and annual accounts have come to light. Moreover, the taxpayer has also established a business under the name and style. This concern has issued sales tax invoices to educational institutions valuing Rs 239,705,567 involving sales tax of Rs 40,749,946 while the unit has not been registered under the Sales Tax Act, 1990. By invoking action taken u/s 38 and 40 of the Sales Tax Act, 1990, business record of the taxpayer has been impounded, which is under scrutiny. Further investigation is under way, sources added.