FAISALABAD: Federal Board of Revenue has sorted out a group of structured tax fraudsters in the textile sector.
Directorate of Intelligence & Investigation-Inland Revenue Faisalabad has arrested three persons accused of tax fraud in textile sector. Details reveal that two of the accused had registered fake units in Faisalabad. The two had made fake purchases of Rs 222,476,253 and Rs 45,829,094 from different textile units involving sales tax of Rs 13,348,575, and Rs 2,749,746 respectively.
Another person, a tax consultant, is involved in registration of fake unit. He prepared and presented fake documents for the sales tax registration and filed its returns. He is also involved in filing tax returns of units operating in textile, packages and chemicals sectors that involved huge tax frauds. The consultant was involved in different tax frauds since 2001. He is found to be behind the registration of about 83 units involved in tax fraud. Moreover, he had used fake documents including letter heads, rent deeds, utility bills, affidavits and CNICs of third persons for sales tax registration through Central Registration Office (CRO) directly.
Sales tax is a leading source of tax revenue in the country. However, there exists a considerable tax gap between potential and actual tax collection due to wide spread tax evasion, both by corporate and non corporate taxpayers.
DI&I Faisalabad has identified a number of textile units which are found to be involved in such tax frauds. It has registered FIR against seven fake units. These units have shown supplies amounting to Rs 3,707.6 million from the several spinning units mentioned in FIR and inflicted loss to national kitty of over Rs 206 millions.
The arrested fraudsters are behind the bar and campaign against tax fraudsters is continued. A comprehensive drive against persons involved in tax fraud is being carried out by the Directorate General of Intelligence & Investigation-Inland Revenue across the country.
