ISLAMABAD: The Directorate General, Customs Intelligence and Investigation, Federal Board of Revenue Islamabad has detected a case of tax evasion through mis-declaration amounting to Rs39.405 million by M/s Charisma Catering, Rose Arcade, Sector G-11, Markaz Islamabad.
According to details, Director, Directorate of Intelligence and Investigation FBR, received a tip-off that M/s Charisma Catering Islamabad has imported polyester and viscose fabrics of assorted colours from China at Dry Port Islamabad and evaded duties and taxes payable thereon by claiming undue benefit of the SRO 1125 (1) 2011 dated 31.12.2011.
In order to determine the veracity of the information, website of the FBR was visited which revealed that name of the importer did not appear on Active Taxpayer List (ATL). The Regional Tax Office Islamabad was requested to confirm the status of the importer. The RTO Islamabad confirmed that the importer was non-active since 25th of May 2015.
This fact disentitled the M/s Charisma Catering Islamabad from the Sales Tax in terms of SRO 1125 (1) 2011 as amended vide SRO 154 (1) 2013. Under the said notification, entitlement to Sales Tax exemption at import stage is subject to the condition that name of the importer should be on the Active Taxpayer List. Therefore the importer is liable to pay sales tax @ 17% instead of 3% besides Additional Sales Tax and Income Tax. Therefore the importer, by way of mis-declaration, succeeded to avail the tax concession or exemption otherwise not available to him. This has caused the treasury a loss of revenue amounting to Rs39.405million on account of legitimate taxes in 13 GDs. Importer has committed the offence of the mis-declaration in violation of the provisions of Section 32 (1), 32(2) and 79 (1) of the Customs Act-1969.
