KARACHI: Deputy Commissioner Inland Revenue, Zone-I submitted first information report (FIR) against Muhammad Zain Anis owner of M/s Royal Industries, who was booked in a case of tax fraud and evasion of sales tax amounting to Rs95.108 million.
On 17 October 2020, investigation officer submitted FIR and informed the court that office was received a red alert letter dated Dec 12, 2012 issued by the Director, directorate of intelligence & investigation IR Karachi, it was reported that above-mentioned suspect has committed tax fraud as defined under section 2 (37) of the sales tax act, 1990 by obtaining illegal claim of sales tax refund to the tune of Rs95.108 million and refund sanctioned to the tune of Rs 64.096 million on the name of his business registered as M/s Royal Industries.
He submitted that the Federal Tax Ombudsman (FTO) took suo moto in the case and passed recommendations in the subject case on August 13, 2020.
He stated that during the tax period from September 2011 to August 2012, the sales tax refund was claimed and got sanctioned on the strength of fake/ flying sales tax invoices against fake zero-rated supplies and the chain inquiry of said person was carried out and it was revealed that they issued invoices to facilitate the accused in claiming illegal sales tax refund, there is no evidence regarding payment against said invoices as required under section 73 of the sales tax act, 1990.
Investigation officer added that during the physical verification of the declared business premises of the said accused was carried out on dated Sep 14, 2020 and it was reported by the team that on the said address no one knows about the suspect and he never carried out any business at declared premises and non existence of registered person was proved.