KARACHI: Pakistan Customs Post Clearance Audit North has unearthed tax evasion of Rs1 billion by M/s Khyber Embroidery and registered FIR against the Company.
According to the details, M/s Khyber Fabrics Embroidery, bearing the National Tax Number (NTN) 4451931-5, is implicated in fabric imports and claiming FATA/PATA exemptions, this firm pledged to channel the imported materials solely within the FATA PATA region’s jurisdictions.
After receiving credible information, PCA North’s audit team started action. During detailed examination it was discovered that M/s Khyber Fabrics Embroidery was unlawfully selling exempt (FATA PATA) goods in the nation’s commercial hubs, blatantly violating the exemption facility.
During audit, the supposed bustling manufacturing site located in Bara Bazaar, Khyber, was devoid of any substantial manufacturing activity. The so-called “factory” was home merely to two stitching machines, a trivial stock of polyester pile fabric (only 4 rolls), and a couple of workers who bore no documentation to elucidate the handling of the imported fabric worth Rs 3.7 billion.
The importer was allowed to provide cogent evidence of consumption and legal sales of manufactured goods as well as corresponding utility bills and labor records, but the importer failed to comply.
The inescapable conclusion was that the importer had been exploiting the FATA PATA exemption for nefarious gains through the illegal sale of high-end fabrics. Consequently, an FIR was lodged against the operators of M/s Khyber Fabrics Embroidery for this fraudulent misuse of tax exemptions and subsequent illegal sales.
