In a recent turn of events, the Federal Board of Revenue (FBR) has taken significant action against individuals and companies involved in a sales tax fraud amounting to a staggering Rs. 314.8 billion. This is a story of intrigue, deception, and the relentless pursuit of justice by one of Pakistan’s premier financial institutions.
Unmasking the Fraudulent Scheme
The Regional Tax Office-I Karachi has been at the forefront of this investigation, and they’ve made remarkable progress in unearthing the truth behind this massive sales tax fraud. Their meticulous work has led to the revelation of a complex web of deceit involving KH & Sons and other entities.
The Initial Suspicions
The suspicion began when KH & Sons declared a massive purchase of Rs. 1,748 billion in February 2023, accompanied by a sales tax claim of Rs. 314.8 billion in April 2023. This raised red flags, as it seemed disproportionately large, given the nature of their business operations.
A Web of Deception
Further investigation revealed that this astronomical sales tax amount was nothing more than a creation of fake/bogus input tax. It became evident that KH & Sons, in collusion with supplier entities like Mohsin Traders and Sales Promoters, was manipulating the system.
Declarations of Deceit
Subsequently, KH & Sons reported supplies of Rs. 1,732 billion, complete with a sales tax of Rs. 314.8 billion in July 2023, all while continuing their fraudulent practices. This intricate scheme had not only siphoned off a colossal sum but also tarnished the reputation of those involved.
The FBR’s Pursuit of Justice
In light of these revelations, the FBR has embarked on a relentless journey to bring the culprits to justice. Their efforts have been commendable and are a testament to their commitment to upholding the law.
KH & Sons and Mohsin Traders have been promptly blacklisted under section 21(2) of the Sales Tax Act, 1990, read with Rule 12 of the Sales Tax Rules, 2006. This action aims to prevent them from further participating in fraudulent activities.
Cooperation with Field Formations
The FBR has not stopped at blacklisting the offenders. They have shared all relevant details of buyers and suppliers involved in this fraudulent supply chain with the concerned field formations. This collaborative approach is designed to ensure that registered persons within their respective jurisdictions are held accountable under the law.
Hunt for the Mastermind
Efforts to locate the mastermind behind this intricate operation are also underway. Owais Ismail, believed to be the main instigator, has recently shifted his office, making it a challenge for the authorities to track him down. However, the FBR remains determined to apprehend him and ensure justice is served.
The FBR’s unwavering commitment to tackling this colossal sales tax fraud demonstrates its dedication to preserving the integrity of the financial system. The revelations of this intricate web of deceit and the subsequent actions taken serve as a powerful reminder that fraudulent activities will not go unnoticed or unpunished.