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Print Print 2023-09-22

GST evaded through flying invoices estimated at Rs5-6trn

  • Use of fake/flying invoices to commit sales tax fraud increases after facilitation, automation and easy ways to get sales tax registrations
Published September 22, 2023

ISLAMABAD: The estimated sales tax amount evaded through the fraudulent use of flying invoices (irrelevant invoices) would be approximately Rs 5-6 trillion.

Sources told Business Recorder that the use of fake/flying invoices to commit sales tax fraud has increased after facilitation, automation and easy ways to get sales tax registrations.

The quantum of sales tax fraud through the “flying invoices” has not decreased after automation. In the name of facilitation, now it is easy to get sales tax registration.

Fake/flying invoices: Taxmen told to conduct probe into cases of big cos

The use of fake invoices has been reduced due to system checks, but the phenomenon of flying invoices has been increased. The estimated amount of sales tax evaded with the help of flying invoices comes to the tune of Rs 5-6 trillion, sources said.

Flying invoices have been used in different cases. There are cases where the input is completely registered but the output is un-registered within the supply chain. On the other hand, there are cases where the output is registered but the input is not registered.

Fake units are registered with the FBR to carryout paper transactions. The fraudsters file fake sales tax returns of dummy firms and claims illegal input tax against bogus invoices. The fake/flying invoices have been used to claim inadmissible refunds/input tax adjustments, causing massive revenue loss to the national exchequer.

The investigating agencies of the Federal Board of Revenue (FBR) are arresting inter province gangs of fake /flying sales tax invoice mafias involved in such scams causing huge revenue loss to national exchequer.

Copyright Business Recorder, 2023


Comments are closed.

zaya zaya Sep 22, 2023 05:40am
Its a Muslim country and Islam is their Faith, do we say Masha Something or Smash a Pakistan!!! All Tamasha, baighairut aur Baihiyaa loag, phir kehtaye hain Dinniyyaa inhaian Jahil Keoun Sumajti hai??? When you reflect as Ignorant Muslims, the World considers Islam as of Ignorance Teaching!!! Now go and abuse me for telling the TRUTH! Apni Kubbar Khudd say Khodnaa!!!
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Arif Sep 22, 2023 07:38am
Fake or Flying , nothing will work unless FBR staff is on board with the perpetrators. FBR should clean its own house in order .
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Usman Sep 22, 2023 08:30am
Catch them and tax then 100% of there belongings and there family member belongings.
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Fatima Sep 22, 2023 08:38am
Is standard practice in my circles.
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Love Your Country Sep 22, 2023 09:25am
مسلمان برائے نام
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KhanRA Sep 22, 2023 09:40am
@zaya zaya, Islam and morality are independent of each other. Religious people can be immoral, and atheists can be moral.
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Khan Sep 22, 2023 10:48am
AS quick fix is required as it is approximately equivalent to half Budget of Pakistan.
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Khawar Nehal Sep 22, 2023 11:39am
@zaya zaya, Do a survey of the people in the country. Ask them if they can explain in rough terms the meaning of ANY ayah from memory. Even the small ones of a few sentences. Then you shall have an idea of what is in their memory and minds.
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Khawar Nehal Sep 22, 2023 11:45am
@Haris, To be a bank you need an expensive license. And then the AWAM expects the services to be priced less after creating such an expensive system of setting up shop to provide services. If you are serious, then AWAM needs to have a separate license to allow low cost capital investment companies to be able to provide remittance services without the ability to provide other banking services. If you have a better and more efficient idea, do tell.
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KU Sep 22, 2023 12:34pm
And FBR probably thought they were at the top of the corruption chain, guess now they have competition for the Guinness Book of World Records. Shameful!
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Boo Ali Sep 22, 2023 01:01pm
oh man, it is almost the size of federal budget that is being evaded through Fake invoices!. would you share the province-wise break down of the tax evasion through such fake means. I am sure that 80% per cent cases are from Punjab. In Punjab there is no adherence to tax laws.
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