KARACHI: The Directorate of Internal Audit-Inland Revenue has submitted an interim challan against Al-Junaid Impex.
The firm is functioning as a domestic “shell” company and obtained registration with the Federal Board of Revenue (FBR) through fraudulent means, exploiting misrepresentation.
The firm, led by Muhammad Junaid evaded sales tax by selling coal (HS Code: 2701) without genuine purchases or substantial payments to the national kitty.
The initial FIR, dated August 1, 2024, implicates government revenue of approximately Rs11,312,755,174, with additional default surcharge and penalties pending assessment.
Tax fraud under the Sales Tax Act 1990 is a technically complex offense often orchestrated by organized mafias. These fraudulent entities exploit statutory loopholes, creating a network of fake firms to generate “fake input sales tax.” This practice aims to minimize their sales tax liability. Transactions within this network involve paper trails rather than actual goods movement, deceiving authorities.
The Directorate’s probe continues, focusing on Al-Junaid Impex’s alleged bogus purchases from M/S Trader Zone. The case sheds light on the abuse of legal processes and highlights the need for vigilance in broadening the tax base.
