KARACHI: Investigation officer of Inland Revenue (IR), Intelligence Investigation & Prosecution (II&P) Cell has submitted first information report before the customs court against owner of M/s Zainab Enterprises/ Safwan Trading Corporation on commission of tax fraud by claiming illegal input/ obtaining sales tax refund on strength of fake and flying invoices and false zero-rated supplies without having any manufacturing facility.
On 16 October 2020, investigation officer submitted that physical verification of declared business premises of accused person was carried out on October 2, 2020 and was reported by the team that on the said address no one known about Babar, owner of M/s Zainab Enterprises/Safwan Trading Corporation and accused never carried out any business at declared premises and non existence of registered person.
He further submitted that registered person was claiming illegal input from various suppliers from September 2011 to October 2020 for Rs116.856 million and purchased variety of goods/ raw materials then made zero rated supplies to various buyers although majority of these items were no zero rated which resulted in creation of refund which was not legal.
Investigation stated that after the formalities and basic investigation case was registered against the above mentioned suspect for 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.
After the hearing, court took FIR into court record and directed him to complete investigation and submit progress report on next date of hearing.
