Gang involved in huge tax fraud busted

ISLAMABAD: A focused drive is being carried out by the Directorate of Intelligence & Investigations, Inland Revenue, FBR against persons alleged to be involved in tax fraud.
The Directorate of Intelligence & Investigation IR, Faisalabad has arrested an accused involved in huge tax fraud. According to details, accused Javaid Iqbal, resident of Faisalabad, was operating a dummy unit M/s King Packages, Multan (which had been fraudulently registered) and was dealing in fake Business transactions. During preliminary investigations the amount of tax evaded through fraud has been worked out at Rs19,620,765 and the amount of fake supplies has been determined at Rs115.113m. Those fake invoices were issued to 23 registered persons of textile and packages units, located at Faisalabad to enable them to get illegal input tax credit and bogus refunds. Major beneficiaries include renowned textile exporters M/S K.B Enterprises, Faisalabad, M/S Image Garments, Faisalabad and M/s Fairdeal (Pvt) Ltd etc. An FIR bearing 03/2013 was registered against the units and the gang of fraudsters. The accused Javed Iqbal had opened multiple bank accounts to facilitate beneficiaries (mostly textile and packaging units at Faisalabad) of fake and flying invoices.
During investigations it transpired that the gang was involved in issuance of fake invoices to claim bogus input refunds. A unique modus operandi was adopted and industrial units were fraudulently got registered with Sales Tax authorities in Multan and other distant locations to hoodwink the tax authorities in Faisalabad.
The said units claimed input tax credit against bogus Goods Declarations and fake invoices. The principal accused was a leading fraudster and instrumental in different tax frauds since 2008. After speedy investigations accused was arrested Tuesday on the basis of incriminating evidence against him.
The Directorate of Intelligence & Investigations, Faisalabad has also identified some other members of the gang of tax fraudsters wherein investigations are in progress. Investigations are also underway to identify those tax functionaries who had colluded with or had abetted with the fraudsters in obtaining bogus Sales Tax registrations without verification or ground checks. Criminal action (In addition to disciplinary proceedings) is likely to be initiated against those functionaries who are found involved.