901 cases of tax evasion, frauds involving Rs 53 billion detected

RECORDER REPORT

ISLAMABAD: Directorate General of Intelligence and Investigation Inland Revenue (IR), Federal Board of Revenue (FBR) has detected 901 mega cases of tax evasion, concealment/tax frauds and cases of high net individuals involving Rs 53 billion during January-December 2016 against Rs 42 billion in 411 cases during January-December 2015.

Sources toldBusiness Recorder here on Wednesday that the record detection of high net individuals to the tune of around Rs 11 billion has been unearthed by the agency during whole year of 2016, involving 399 high net individuals. In 2015, 101 cases of high net individuals were detected involving Rs 1.22 billion.

Directorate General of I&I IR has unearthed 502 mega cases of tax evasion, concealment and tax frauds of around Rs 42.47 billion during January-December 2016 against Rs 41.96 billion in 310 cases during January-December 2015. Within the category of sales tax, the intelligence arm of the FBR has detected 643 cases involving revenue of Rs 22.376 billion during January-December 2016 against 264 cases involving Rs 3.7 billion during same period of 2015. The agency has finalised 462 sales tax cases involving Rs 27.735 billion during January-December 2016.

The detection of 901 cases involving Rs 53 billion in 2016 reflects remarkable performance of Khawaja Tanveer Ahmad, Director General Intelligence & Investigation (IR) and his expert team of intelligence officers, who managed to plug in loopholes in system. A clear and loud message has been conveyed across the country that anyone including super rich or high net individuals now cannot conceal their properties/income/ expenses. The sectors/industries involved in tax evasion have also been exposed by the persistent efforts of the agency. Besides, visible progress has been made in anti money laundering activities, enforcement activities such as raids, FIRs, arrests, etc against tax evaders.

The directorate is simultaneously carrying out investigations on several fronts including Panama leaks/offshore companies, money laundering cases and tax evasion, frauds and concealment etc. The crusade against the tax dodgers has been intensified by Khawaja Tanveer Ahmad and his team with full force.

The agency has assigned new targets to the field formations to assist the FBR in achievement of assigned revenue collection target for 2016-17. Investigations are underway to control tax evasion in cement sector, sugar mills, services sector/professionals, paper/paper board industry and cosmetic sector.

Directorate General of I&I IR took bold initiative to unearth massive concealment of income by an influential real estate developers. Through analysis and investigation of records, data exposed concealment to the tune of billions by some real estate developers. Such actions against big sectors have pointed towards the seriousness of the agency to assist the FBR in achievement of the assigned revenue collection targets for 2016-17.

Directorate General of Intelligence and Investigation IR will also take new measures to control the illicit trade of non-duty paid cigarettes by strengthening the agency's workforce and joint actions by DG I&I IR and customs intelligence.

Keeping in view sensitively of some big cases, the agency had completed the legal formalities of taking prior permission of high-ups and availability of irrefutable evidence for taking action against the units. For the first time in the history of the FBR, the Directorate General of Intelligence and Investigation Inland Revenue has continued its investigations in different sectors including real estate sector to ensure recovery of concealments involving billions of rupees. As a result of these actions, the Directorate General of Intelligence and Investigation IR has been emerged as a lead agency in detection of tax frauds in the country, sources said.

Another key initiative of the Directorate General of Intelligence and Investigation IR is the action against high net worth individuals who have made huge investments in real estate assets which involve understatements of the value and tax evasion. The agency detected tax aversion in paper and paper board sector, petroleum sector, manufacturers-cum-retailers and other sectors.

The FBR's intelligence arm is confident to complete action against the tax evaders and those committing tax frauds to ensure recovery of the evaded amount to the tune of billions of rupees, they said.