KARACHI: Investigation officer of Commissioner Inland Revenue Zone-I has submitted a progress report against Faisal Mirza, owner of M/s KZ Industries and others before the customs court Karachi, the suspect is nominated in first information report (FIR) for of tax fraud by obtaining sales tax refund on the strength of fake and flying invoices and false zero-rated supplies without having any manufacturing facility.
On 11 August 2021, investigation officer has submitted that during the investigation, it was established that the above mentioned suspect and others registered and unregistered persons who are directly, indirectly, knowingly, dishonestly, fraudulently and without any lawful excuse are the beneficiaries and whose criminal negligence and connivance by any act or caused to do any act, omitted to take any action including the making of supplies and taxable goods without payment of sales tax leviable under sales tax act, 1990, claiming illegal sales tax refunds on the strength of fake/flying invoices, having committed tax fraud as defined under section 2 (37) of the sales tax act, 1990.
He further argues that accused person evaded sales tax amounting to Rs9,036, 512, therefore, case was registered against them for violated section 2 (2) 2(16) 2(17) 3, 6, 7, 8, 10, 22, 23, 26 and 73 of the sales tax act 1990 read with sales tax refund rules, 2006 and punishable under section 33(i) 33(13) of the sales tax act, 1990 and they evaded amounting to Rs. 9, 036, 512 to the national exchequer.
