ISLAMABAD: Chairman Federal Board of Revenue (FBR) Javed Ghani on Friday issued directions to his Bureau offices to speed up the operation against tax evasion after the FBR unearthed a major sales tax evasion scam in Faisalabad.
The Bureau said that all those found involved in fake and flying invoices and tax evasion would be dealt with strictly as per the law, adding it would take swift action even against its own employees if they were found involved.
In a related development, the Directorate of Intelligence & Investigation (Inland Revenue), Faisalabad arrested the owner of Fazal Awais Textiles, Faisalabad for his suspected involvement in tax fraud by way of issuing fake and flying invoices to a non-existing unit named Arrow International.
Accordingly, tax fraud proceedings against the suspects have been initiated and a First Information Report (FIR) has been lodged against Arrow International, its buyers, suppliers and other beneficiaries under section 37A of the Sales Tax Act, 1990.
The investigation revealed that Arrow International is a non-existent and dummy unit, which had been registered by the suspects for issuing and adjusting fake/flying invoices and to facilitate buyers and suppliers to avoid payment of sales tax, including further tax.
Moreover, 65 registered persons were also declared ‘purchasers’ by the suspects in a scheme to avoid the payment of due tax. These 65 registered persons allegedly evaded further tax amounting to Rs134.453 million.
The FBR has encouraged the people to come forward and reveal the identity of people involved in tax evasion by using fake and flying invoices. The FBR says it will grant a reward to whistleblowers under its Reward Rules and the names of whistleblowers will be kept secret.