ISLAMABAD: The Federal Board of Revenue (FBR) in a crackdown on tax evaders in steel sector, nailed a ‘fraudster’ who owed Rs81 million in taxes to the department.
According to the FBR, there are various ‘groups’ operating under different names in re-melting and re-rolling steel sector who run various units in different names to evade billions of rupees in taxes.
One such group was operated by accused Muhammad Shafiq who allegedly ran steel units but evaded taxes. However, the Regional Tax Office Lahore arrested and registered an FIR against him.
According to officials, the accused owe approximately Rs81 million to the tax department in taxes. Details of the FIR registered against the accused revealed that Paramount Engineering Works, situated on Kala Khatai Road, Shahdara filed a writ petition in the Lahore High Court and sought exclusion of sales tax from their electricity bills in terms of Rule 58(H) of the Special Procedures Rules, 2007 and permission to pay sales tax under normal regime and subsequently the court granted the plea
In compliance with the court’s orders, the Lesco discontinued charging sales tax on consumption of electricity units. Hence, Muhammad Shafiq was required to pay sales tax under normal tax regime. But conversely, he did not file correct declarations of his taxable activity in his monthly sales tax returns from tax periods from July, 2013 to September, 2013.
He declared NIL activities in the returns despite the fact that substantial quantum of electricity units were consumed by the accused which was evident from his electricity bills for the months of July 2013 to September 2013.
As per the electricity bill for September 2013, an amount of Rs81.86 millions is appearing as deferred amount of sales tax, which is recoverable from the accused.
Therefore, on the basis of material evidence, criminal case is registered against the accused Muhammad Shafiq along with other accused persons under Section 37A and 37B of the Sales Tax Act, 1990.
