KARACHI: The Customs Court directed investigation officer of Inland Revenue (IR) to complete investigation and submit progress report against Muhammad Rizwan, owner of M/s Amna Corporation involved in tax fraud by claiming illegal input/ obtaining sales tax refund on the strength of fake and flying invoices and false zero-rated supplies without having any manufacturing facility.
On 3 November 2020, investigation officer of Inland Revenue, II&P Cell, Zone-1 Regional Tax Office-III, Karachi submitted first information report and informed the court that during the tax period from Nov 2012 to 2013, the sales tax refund was claimed and got sanctioned on the strength of fake/ flying sales tax invoices against fake zero rated supplies and chain inquiry of said person was carried out and it was they just issued invoices to facilitate the accused in claiming illegal sales tax refund, there is no evidence regarding payment against said invoices as required under section 73 of the sales tax act 1970.
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He stated that accused persons managed to get registered business with above name declared principal business activity as manufacture of pulp, paper and paperboard and was claiming illegal input from various suppliers for the period of Nov 2013 to 2013 of Rs11.656 million.
After the hearing, the court took the complaint on court record and directed the investigation officer to complete the investigation and submit a progress report on the next date of hearing.
Case was registered for violation of sections of sales tax act, 1990 read with sales tax refund rules, 2006 and punishable under section 33 & 34 of the sales tax act, 1990 and section 468, 471 & 420 of the Pakistan Penal Code 1860.
