The Corporate Regional Tax Office (CRTO) has detected massive tax evasion amounting to Rs 299.40 million committed by an unregistered steel re-rolling mill. According to details, credible information was received that a steel re-rolling mill located at SITE area was engaged in tax fraud as the same had been in operation without any payment of taxes.

Reacting to this information, a team during physical verification found them conducting taxable activity. The team during scrutiny of records learned that this unit was blacklisted by the department.

Furthermore, it was also revealed that this re-rolling mill was in operation and engaged in manufacturing of iron bars without disclosing its operation to the tax authorities.

The calculation of sales tax involved in tax fraud on the basis of electric bills and others revealed that from December 2017 to October 2019, this blacklisted unit had been in operation at the premises and scrap from ship breaking, steel belts and some other stuff were being used as raw material for manufacturing of MS bars, which were being supplied to the local market without payment of taxes. This blacklisted unit was found involved in tax fraud as it did not pay any kind of taxes.

Copyright Business Recorder, 2020

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