KARACHI: Investigation in fake sales tax invoices case, being conducted by Directorate of Intelligence & Investigation-Inland Revenue (I&I-IR), Karachi, is likely to be suspended. According to sources, a team of I&I-IR, Karachi on secret information had arrested Arshad Ali Khan, who was involved in the issuance of fake sales tax invoices under the name of Kotila Corporation.
During a preliminary investigation, it was revealed that Kotila Corporation is involved in generation and issuance of fake sales tax invoices to several registered persons which are being adjusted as input tax against the output tax and getting benefit of millions of rupees and causing loss to the government exchequer.
Sources said that that the proprietor of the accused firm late Noor Muhammad had expired in February 2007 and the department was accordingly intimated his death certificate for record. They said that the request for the cancellation of sales tax registration of Kotila Corporation was also submitted in the office of Commissioner IR RTO Karachi.
Moreover, sources said that no business activity was done after the demise of the deceased from July 2008 onwards and added that it was however noticed that sales tax returns in the name of Kolila Corporation for the period from July 2011 and onwards continuously been filed by unknown person using their e-filing user ID and password from undisclosed premises and generating fake input tax credit through fake invoices.
Therefore, investigation was conducted in the case which revealed that sales tax invoices were issued against payments through banking channel. Further verification from the buyer’s bank revealed that following thirty four cheques of worth Rs 791. 67 million were issued and cleared in favour of Kotila Corporation.
It was further disclosed that a person namely Arshad Ali Khan s/o Sher Ali Khan holding CNIC 42101-7234548-7, opened a fake bank account by claiming himself as the Proprietor of Kotila Corporation and maintaining such bank account from his office located at North Nazimabad, Karachi. On scrutiny of bank details, it was confirmed that all above mentioned 34 cheques were credited in the aforesaid bank account operated by Arshad who fraudulently declared himself as Proprietor and Tousif Ahmed, another accused person in the case was declared as mandate in bank account.
Sources said that Arshad Ali Khan was the actual culprit who was running fraudulently Kotila Corporation and was involved using the password for e-filing of sales tax returns along with beneficiaries who had individually and jointly committed the tax fraud by way of issuing fake sales tax invoices and adjusting illegal inadmissible input tax on the basis of fake sales tax invoices and bogus import by committing this tax fraud.
They said that the accused had deprived the national exchequer of its legitimate revenue to the tune of Rs 40 million approximately and had also violated the provisions of Sales Tax Act 1990. They said that the FIR was lodged and the accused person had also been presented in Customs & Taxation Court on January 20, 2015 for 14 days remand.
Meanwhile, a team of I&I on the information of detained accused Arshad had conducted several raids at different parts of Karachi to nab other associates of Arshad. However, the team remained unsuccessful but got important lead to burst the whole gang. Replying to a question, sources said that investigation in this was going at snail pace as the tax officers involved in this case were generating pressure on Directorate for not pursuing its investigation further. Moreover, sources said that they were putting all efforts to stop the investigation and the possibilities of transfer and posting in the Directorate for the purpose could not be ruled out.
