ISLAMABAD: The Federal Board of Revenue (FBR) has decided to widen the scope of investigation from electronic sector to other sectors which deal with massive imports of electronic or electrical products to find out possible tax evasion.
A Lahore based electronic company has been found involved in committing tax evasion of Rs 10 billion through different means and tactics. A well-placed source told this scribe here the other day that followed by the above mentioned scam, the Directorate General of Intelligence and Investigations (I&I) has started a hectic full-fledged exercise to dig out chain of officers hailing from other department involved in tax evasion committed by the sectors other than the electronic.
” A Lahore-based electronic company committed tax evasion of Rs 10 billion by means of erecting a fake company and depositing and transferring profits to the bank accounts of fake company and then back to original bank accounts of the said company,” the source added, saying that FBR was investigating to find out aides of tax evaders because preliminary investigation had disclosed involvement of officials from government departments namely Security and Exchange Commission of Pakistan SCP, some Banks, tax consultants, auditors and others.
The source shared that in result of investigation it had been disclosed that cement and others were also involved in such practices. Therefore, the FBR was investigating that either tax payers in other cities related to electronic sector were also involved in tax evasion or not.
In this regard, main task has been given to Director General (DG) Directorate General of Intelligence and Investigation (I &I) Haroon Muhammad Khan Tareen to start monitoring of other sectors in collaboration with other anti corruption organizations including Financial Management Unit (FMU) of the State Bank of Pakistan (SBP).
Tareen, a BS-21 officer, is a senior officer of Inland Revenue Service has previously served on various key positions across the country and his last posting was Member (Taxpayer Audit), Accountant Member, Appellate Tribunal IR, Bench-I Islamabad.
Similarly, FMU is an effective and highly regarded Financial Intelligence Unit in the domestic, regional and international fight against Money Laundering and Terrorist Financing conforming to the highest international standards, ethics and professional conduct and it has functions to receive suspicious transactions reports and CTRs from financial institutions and such non-financial businesses and professions as may be necessary to accomplish the objects.
The source said that FBR would share its findings with these organizations regarding money laundering as money laundering was resultant activity of tax evasion because tax evaders commit this activity to manage their yields obtained from tax evasion. The source said that Customs Authorities had also been asked to furnish information regarding imports of electronic goods in bulk quantities imported by other companies besides the above mentioned Lahore based company.
The source said that main credit of digging out above mentioned tax evasion of Rs 10 billion by a Lahore based company went to investigating unit bases in Lahore of I & I, therefore FBR should confer special awards on those officials who had worked hard and shown extra ordinary performance to find out the financial anomaly. “Although, presently, no such law exists, yet it is a normal practice in the developed world where officers with extra ordinary performance are awarded with national awards and medals to recognize their services as well as to persuade their fellows and office mates to higher the volume and quality of their service” the source said recalling that several high level meetings were held on this issue and even recommendations had also been finalized but no result.
