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Home Islamabad

Massive ST evasion scam unearthed

byCustoms Today Report
09/06/2014
in Islamabad, Latest News
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ISLAMABAD: The Computerised Risk-Based Evaluation of Sales Tax has detected around 250 to 300 Sales Tax persons involved in a massive scam of sales tax evasion by showing dummy business transactions to claim illegal input tax adjustment, causing huge loss to the national kitty.

As per details, more than over 250 to 300 units falling within the jurisdiction of Regional Tax Offices (RTOs) are involved in the scam across the country.

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The scam has been unearthed by the Computerised Risk-Based Evaluation of Sales Tax (Crest) Team of RTO Lahore. The analysis of the Crest system pinpointed the entire chain of registered persons and their supplies involved in making dummy transactions to commit tax fraud.

List of beneficiaries of scam revealed that 139 units fall within the jurisdiction of RTO Abbottabad; RTO Gujranwala; RTO Islamabad; RTO Rawalpindi; RTO-I Lahore; RTO-II Karachi and RTO-II Lahore. List of suppliers of beneficiaries revealed that 34 suppliers fall within the jurisdiction of RTO-I Lahore; RTO-II Karachi; RTO-II Lahore; Gujranwala and RTO-III Karachi. List of units and their suppliers from whom the scam originated revealed that over 100 units fall within the jurisdiction of almost every RTO.

Details of the scam revealed that the Crest domain team is working on identifying potential cases to prioritise processing and yield maximum revenue. In this regard, the team has found certain irregularities in business activities of certain registered persons who are either engaged in supplies of different items to different sectors and are making such supplies on the basis of illegal input tax adjustments and thus avoid actual payment of output tax. The way, they have adopted to avoid payment is that a registered person first make purchases from such registered persons who is either null-filer/nil-filer or has shown no supplies to him in his return.

Tags: Computerised Risk-Based Evaluation of Sales Tax (Crest)dummy business transactionsFBRIslamabad RegionRegional Tax Offices (RTOs)Sales Tax evasionscamsdTaxation

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