KARACHI: Under the supervision of Director-General Zulfiqar Ali Chaudhary, Directorate of Post Clearance Audit (PCA) South registered a first information report (FIR) against M/s Fazal e Rabbi Enterprises Lasbella, Hub for tax evasion worth Rs140 million.
The fraudulent enterprise, which is not only fake but also physically non-existent, successfully acquired Export Facilitation Scheme (EFS) authorization to defraud the national kitty.
The PCA audit team started this probe following a tip-off regarding the misuse of EFS exemptions by the alleged enterprise.
The team promptly visited two locations—one in Karachi and another in Lasbella, Hub district—where M/s Fazal e Rabbi Enterprises was purported to be operating. However, their investigations revealed that other businesses had been functioning at both addresses since long. These businesses confirmed that M/s Fazal e Rabbi Enterprises had never existed at the specified locations.
Further scrutiny of the importer’s registration profile unearthed that the entity had registered a fake Karachi-based address on its National Tax Number (NTN) and Sales Tax Registration Number (STRN) certificate.
Despite being registered in Karachi, EFS authorization was fraudulently acquired from Collectorate of Customs Gawadar based on yet another fictitious address located in Lasbella, Hub, which was not even mentioned on the NTN/STRN certificate.
Customs WeBOC data revealed that the fraudulent EFS user never made anh exports since the acquisition of EFS authorization; while import goods worth Rs 208 million had been pilfered under EFS, resulting in the evasion of duty taxes amounting to Rs 140 million. The income tax returns of the fraudulent entity indicated very poor financial worth, yet it transferred illicit funds worth Rs 208 million abroad against illegal EFS-imports.
PCA South has officially lodged a First Information Report (FIR) and formed two teams to apprehend the accused individuals and their collaborators.
