AIRLINK 188.00 Increased By ▲ 1.19 (0.64%)
BOP 13.25 Increased By ▲ 1.08 (8.87%)
CNERGY 7.27 Increased By ▲ 0.16 (2.25%)
FCCL 38.40 Increased By ▲ 1.32 (3.56%)
FFL 14.86 Increased By ▲ 0.17 (1.16%)
FLYNG 25.77 Increased By ▲ 0.18 (0.7%)
HUBC 133.48 Increased By ▲ 1.75 (1.33%)
HUMNL 13.15 Decreased By ▼ -0.10 (-0.75%)
KEL 4.20 Decreased By ▼ -0.01 (-0.24%)
KOSM 5.89 Decreased By ▼ -0.08 (-1.34%)
MLCF 46.52 Increased By ▲ 0.87 (1.91%)
OGDC 201.10 Increased By ▲ 1.66 (0.83%)
PACE 6.08 Increased By ▲ 0.04 (0.66%)
PAEL 38.61 Increased By ▲ 1.02 (2.71%)
PIAHCLA 16.88 Decreased By ▼ -0.14 (-0.82%)
PIBTL 7.88 Increased By ▲ 0.12 (1.55%)
POWER 10.74 Decreased By ▼ -0.02 (-0.19%)
PPL 171.20 Increased By ▲ 0.66 (0.39%)
PRL 33.25 Increased By ▲ 0.34 (1.03%)
PTC 22.94 Decreased By ▼ -0.37 (-1.59%)
SEARL 96.45 Increased By ▲ 0.83 (0.87%)
SILK 1.09 Increased By ▲ 0.02 (1.87%)
SSGC 31.17 Increased By ▲ 0.95 (3.14%)
SYM 17.61 Increased By ▲ 0.13 (0.74%)
TELE 8.08 Increased By ▲ 0.06 (0.75%)
TPLP 12.27 Increased By ▲ 0.54 (4.6%)
TRG 59.85 Decreased By ▼ -2.41 (-3.87%)
WAVESAPP 12.00 Increased By ▲ 0.21 (1.78%)
WTL 1.50 Increased By ▲ 0.03 (2.04%)
YOUW 3.88 Increased By ▲ 0.01 (0.26%)
BR100 11,839 Increased By 75 (0.64%)
BR30 34,863 Increased By 313.3 (0.91%)
KSE100 112,680 Increased By 936.3 (0.84%)
KSE30 35,150 Increased By 343.7 (0.99%)

KARACHI: The Federal Board of Revenue (FBR) has reportedly halted investigations into an alleged Rs11 billion tax fraud case involving a prominent cement manufacturer, following the transfer of key investigating officers from the Internal Audit department.

The investigation, which had recently expanded to include three more cement companies, abruptly stopped after the FBR transferred all officers involved in the case to different cities, according to sources familiar with the matter.

The case initially gained momentum when investigators claimed to have recovered Rs1 billion from the primary accused cement company under investigation. This success prompted the Directorate of Internal Audit to broaden its scope, requesting the Large Taxpayers Office (LTO) Karachi to initiate an audit of three more cement manufacturers.

Hefty penalty imposed on manufacturer: FBR begins scrutinising cement sector

The alleged fraud involved a sophisticated scheme where companies claimed input tax adjustments based on fake coal purchase invoices. The investigation revealed a complex chain of fraudulent transactions among 12 companies, all of which were previously blacklisted by various Regional Tax Offices (RTOs) across Pakistan.

Moreover, the documents said that they exploited the “active” status on FBR’s portal to lend credibility to their operations and used “withholding adjustments” and “fake credit notes” to generate fraudulent input tax claims.

Since December 26, 2023, the cement manufacturers have been given multiple opportunities to provide documentation supporting their claims, including purchase invoices, weight receipts, delivery challans, and bank payment proofs. However, they have failed to produce the required evidence, particularly documentation showing the utilisation of imported coal in their manufacturing process.

The case violates Section 73 of the Sales Tax Act, of 1990, which mandates all payments to be made through proper banking channels. Despite the serious nature of these allegations and initial progress in the investigation, sources confirm that the case has reportedly been shelved without any official explanation.

The sudden transfer of investigating officers and suspension of the probe has raised questions about the transparency of the investigation process and the influence of powerful industry players in regulatory matters.

Copyright Business Recorder, 2024

Comments

Comments are closed.

Arsalan Dec 10, 2024 07:27am
cement mafia so strong that they can have fbr officers transferred. mafia's in all industries aligned with govt bodies. all together in the loot. wish the whole country can leave Pakistan
thumb_up Recommended (0)
Aizaz Dec 10, 2024 08:23am
Cement industries are being run by very influential families. Any probe into their financial matters can roll the heads of FBR as it is evident through transfers of enquiry officers.
thumb_up Recommended (0)
Aamir Dec 10, 2024 08:35am
This is Pakistan where the law does not apply equally to everyone. No person in his right mind will invest here.
thumb_up Recommended (0)
NXT Dec 10, 2024 09:28am
Let the Prime Minister take note. As far as the public is concerned - this is hardly newsworthy!
thumb_up Recommended (0)
KU Dec 10, 2024 11:50am
Laughable to read ''raised questions about transparency''. So what else is new, or shall we say in corruption that plays out daily across the regime of elites? This is called consistent/sustainable.
thumb_up Recommended (0)