Fraudster held for issuing fake invoices, causing huge loss to national kitty

ISLAMABAD: In a major breakthrough, the Directorate of Intelligence & Investigation Inland Revenue, Faisalabad has arrested Muhammad Yousaf, proprietor of M/s Saytex International, one of the major culprits running the racket of fake and flying invoices, causing huge loss of revenue to the national exchequer.

The directorate had unearthed a big sales tax evasion scam of issuing/adjusting fake and flying invoices involving tax fraud of millions of rupees. Accordingly, prosecution proceedings against the members of the fraudsters’ gang were initiated and the First Information Report (FIR) was lodged against M/s Arrow International, its buyers, suppliers and other beneficiaries under section 37(a) of the Sales Tax Act 1990. The person arrested had issued fake invoices worth Rs104.446 million to M/s Arrow International and thus defrauded payment of due taxes thereon. Imran Zafar, IO/Deputy Director, who arrested the accused has obtained physical remand of the accused from the learned Special Judge (Customs, Taxation & Anti-Smuggling), Lahore.

The accused is currently under further investigation. It is pertinent to mention here that two other members of the fraudsters’ network, namely, Arshad Mehdi and Muhammad Danish Javed were also arrested few days earlier. Arshad Mehdi is the declared proprietor of dummy unit, M/s Arrow International, in whose name 5 bank accounts were opened in Faisalabad and Lahore through which transactions of Rs288 million had been effected. Arshad Mehdi is currently in jail serving judicial remand. The other person Muhammad Danish Javed, has been found to have deposited money in the bank accounts of dummy unit M/s Arrow International against whom an FIR has already been lodged for evasion of tax amounting to Rs134.4 million. The said person is also in jail under judicial remand.

Investigation from these arrested persons subsequently led the Intelligence and Investigation Directorate to identification of real culprits behind establishment and running of this network of tax fraudsters involving 65 units and total invoice value amounts to Rs1.3 billion.

The arrest of Muhammad Yousaf, proprietor M/s Saytex International, Faisalabad is in continuation of Inland Revenue Intelligence’s tirade against tax fraudsters and networks of dubiously registered firms involved in fake and flying invoices.