ISLAMABAD: Directorate General of Intelligence and Investigation Inland Revenue has arrested a customs employee of Input Output Coefficient Organisation (IOCO), Federal Board of Revenue (FBR), who is a member of a gang operating fake and dummy units to evade sales tax of Rs 1.2 billion.
Sources told Business Recorder that the main beneficiaries, who are the owners of a shoe company, have escaped abroad.
An FIR No. 06/2023 was registered by the Directorate of I&I-IR, Lahore under section 37A read with 37B of the Sales Tax Act, 1990 on account of tax fraud of Rs. 247,896,098/-. An accused namely Muhammad Imran was arrested in the said FIR.
The investigation from the said accused had revealed that a gang of fraudsters had fraudulently got registered a dummy unit (Fast Traders) in the name of Muhammad Imran and a bank account was also opened in Lahore.
The retrieval of bank accounts details revealed that one Malik Faisal Sajjad is actively involved in commission of the said tax fraud. The said Malik Faisal Sajjad was in hiding and despite hectic efforts he was not traceable.
One of the main beneficiaries of fake and flying invoices issued by M/s Fast Traders is a popular shoes retail-brand. M/s Fast Traders has issued fake and flying invoices without actual delivery of goods to these two concerns at value of Rs. Rs. 57,805,500/- involving sales tax of Rs.9,826,935/- and value of Rs. 1,192,824,800/- involving sales tax of Rs. 208,176,114/- respectively.
Against the sales tax inclusive value of Rs. 1,468,633,349/- the said beneficiary has made payments in the Bank Account of M/s Fast Traders only to the tune of Rs. 651,520,215/- (i.e., compliance of section 73 is made only to the extent of 41.91 % of total value that’s too only for hoodwinking the department).
It was found that every time the amount was remitted from the said Beneficiaries’ bank account to the bank account of M/s Fast Traders the said amount was withdrawn in cash on the same day by Malik Faisal Sajjad. In this way total cash withdrawal by Malik Faisal Sajjad only from the single bank account is at Rs. 651 millions.
During the pursuit to locate him, it was found that he is an employee of Pakistan Customs in the designation of Lower Divisional Clerk (LDC) and is presently posted in the Directorate of Input Output Coefficient (IOCO), Lahore.
It was further found that the accused has not been attending office since November 1, 2023 and no one in his office was aware of the reason of his absence.
The accused is a member of a gang who is operating fake and dummy units with intricate layering and hiding mechanism. The accused is revealing only very minimal facts and is accepting only those facts which are confronted to him on the basis of audio/ video or documentary evidence during the hearing.
The accused has deposited a big chunk of approximately 11.5 Crore rupees in his one personal bank account.
The accused has also disbursed amounts from his personal bank accounts to his accomplices in the tax fraud. The accused has only admitted this fact when he is confronted with the documentary evidence in form of bank record otherwise the accused was reluctant to reveal name of any of his accomplices.
The directorate has requested the court to grant physical remand of the accused for a further period of 14 days, they added.
Copyright Business Recorder, 2023
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