Wednesday August 17, 2022

FBR lodges Rs1.2bn fraud case against businessman

June 16, 2022

Karachi: The Directorate of Internal Audit-Inland Revenue of the Federal Board of Revenue (FBR), Karachi, has lodged a first information report against businessman Nawab Zaman and others for allegedly making a Sales Tax fraud worth Rs 1.2 billion.

FBR authorities said investigations had been launched to reach the real beneficiaries of the fraud and in this regard, raids were being conducted for their arrest. The FIR has been lodged by Asif Ali Abro, deputy director of Directorate of Internal Audit-Inland Revenue, FBR, Karachi, under Sections 373, read with Section 37-D of the Sales Tax Act 1990.

According to official papers, copies of which are available with The News, Nawab Zaman made a fake company named Tamna Enterprises for this fraud and got Sales Tax registration in the FBR on January 22, 2016 by fraudulent means with intention to commit tax fraud.

The accused neither made any purchases from any persons or firms during the tax period of June to November 2021 nor showed any carry forward input tax during the same period but made taxable supplies up to Rs 7.074 billion on which Rs 1.20 billion Sales Tax had not been paid.

Besides having a turn-over of Rs 7.074 billion, the accused failed to show the trail of this transaction in his bank account, which is a violation of Section 73 of the Sales Tax Act 1990. The accused was declared “black-listed” by the FBR immediately when this fraud surfaced. The acts of the accused fall in the domain of tax fraud as defined in Section 2(37) of the Sales Tax Act 1990.