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RTO Faisalabad recovers Rs150m in GMSA sales tax fraud case

RTO Faisalabad recovers Rs150m in GMSA sales tax fraud case

FAISALABAD: The Regional Tax Office (RTO) Faisalabad has recovered a huge amount of Rs 150 million in a mega Sales Tax fraud case and expanded the scope of investigation against the entire supply chain to arrest all those involved in the scam.

Sources told Customs Today that it is a unique as well as historical case of Faisalabad, even Pakistan, where a huge amount of evaded Sales Tax has been recovered from a fraudulent gang. Out of the tax demand of Rs 439 million, the investigators of the RTO Faisalabad, heading by Mr. Muhammad Afzal Malik, have been able to recover Rs.150 million.

Sources said, this is one of the mega cases where prompt recovery has been made with the personal struggle of the team members of Police Station (I&P), RTO, Faisalabad. Usually, the actual amount of recovery is far low in mega tax fraud cases or big scams where huge demands have been raised in the past. Contrary to this, an amount of Rs 150 million has been recovered from the fraudulent company. The company, engaged in manufacturing of branded and non-branded products of Silicon, has been involved in issuance of fake invoices, suppression of sales and misuse of Sales Tax in lieu of SRO.1125. The company has also been involved in using anonymous Bank accounts to evade Sales Tax and conceal the actual sales/income.

On the special instructions issued by the newly posted lady Chief Commissioner, RTO Faisalabad, Ms. Tasnim Rehman and Commissioner Zone-I, Mr. Nasir Khan, the Police Station I&P, RTO, Faisalabad was taken strict action against Muhammad Akram & Muhammad Arshad (real brothers), Chief Executive/Director of Companies involved in sales tax fraud and specifically pursued this mega tax fraud resulting in prompt recovery of Rs 150 million is made possible.

Details of the case revealed that earlier, FIR No 6/2015 was lodged on 28.01.2015 in the I&P Police Station, RTO, Faisalabad against the Chief Executive/Directors of GMSA Industries (Private) Limited, in mega tax fraud case of Rs 439 million. Muhammad Arshad & Muhammad Akram both the Directors of the said company were arrested by Mr. Muhammad Afzal Malik, Assistant Commissioner, Investigation & Prosecution with his team, Khalid Javed, Bilal Ahmad, Tariq Mehmood, Munir Ahmad & Ansar Shah, etc. and presented before the Special Customs Court Lahore where the Honourable Judge granted four days physical remand.

During physical remand of both the directors agreed to deposit further amount and handed over three post dated Bank account cheques in favour of the department amounting to Rs. 25 millions, Rs.25 million and 10 millions for dates 13.02.2015, 26.02.2015 and 15.03.2015 respectively. One month back, both the accused were sent to Camp Jail, Lahore. In a new development on Monday, i.e. 02.03.2015, the Honourable Lahore High Court accepted the bails of both the accused Directors subject to deposit further amount of Rs.40 millions as well as surety bonds worth Rs. 100 millions.

Sources said that the staff of the Investigation & Prosecution Unit is very reliable, efficient, willing, hard working and paying keen interest in ensuring secrecy in respect of their jobs. They are ready all the time for prompt action and to done well to the best of department interest. Therefore, whole staff is eligible for cash reward, credential certificates as well as out of turn promotions.  It is also pertinent to mention here that with very nominal sources, the team of Mr. Muhammad Afzal Malik is working besides security threats/risk.