FBR raids Multan business house for tax evasion

ISLAMABAD: The Federal Bureau of Revenue (FBR) in a raid on a business house in Multan Friday has unearthed tax evasion of million of rupees despite business transactions worth billion of rupees.
FBR’s Intelligence and Investigation (I&I) Inland Revenues is working to unearth tax frauds and tax evasion cases all over the country. Mr. Muhammad Azam, Director I&I IR has asked the authorities to take notice of the huge tax evasion by the rich.
In this particular case investigation was carried out into the working of M/s SE Multan. This setup is engaged in the business of sale of foreign and locally manufactured tiles and sanitary wares.
It is also working as a distributor of a famous firm manufacturing and selling wood-made item and furniture. M/s SE Multan was making huge taxable supplies without making any payment of due sales tax.
The FBR’s I&I, IR found that this unit was allegedly involved in fraud and is causing loss of billion of rupees to the national exchequer.
Despite declaring turnover in excess of basic threshold, it did not get registered till November 2014. The unit was registered in December 2014 but is still paying negligible tax compared with the actual quantum of its business.
Keeping in view these facts, a team under the supervision of Muhammad Umer Younus, Deputy Director, I&I, IR was constituted under u/s 38 of the Sales Tax Act, 1990 by the Director I&I-IR, Multan.
The team raided the premises of M/s SE Multan on 19.03.2015. During the raid it was observed by the I&I team that the taxpayer is biggest seller of tiles and sanitary wares in Multan.
The premises of the unit are spread over an area of two Kanals, consisting of six-storey building. The upper three floors are meant for sale and display of furniture manufactured by the famous firm.
During the raid, information regarding the bank accounts maintained by the taxpayer was gathered. The data available in the computer, when examined, has revealed that the taxpayer is involved in making business transactions worth billions of rupees.
The I&I, IR has concluded that the taxpayer is allegedly involved in tax fraud as envisaged in section 2(37) of Sales Tax Act 1990 and is evading taxes worth million of rupees.
The warehouse of the business house comprises approximately one acre and is situated at Dera Adda was also visited by the raiding team and detailed stocktaking was carried out. During the exercise, one of aides of the taxpayer tried to obstruct the team, however, the persons from the chamber and office bearers of the local tax bar intervened and defused the situation.
The taxpayer tendered unconditional apology to the raiding team and the situation calmed down. The bank account statements are being requisitioned from the banks and further investigations are in progress.
It was the first ever raid by Inland Revenue/I&I-IR in Multan, which hit the big fish on allegation of evading tax and it will send a strong message to the other tax evaders of the area.