PESHAWAR: The Federal Board of Revenue’s Directorate General of Intelligence and Investigation-Inland Revenue has unearthed massive tax evasion by some companies.
The Peshawar I&I-IR busted the organised gang involved in business of fake and flying invoices to commit tax frauds and claim illegal input tax adjustments, reflecting existence of blacklisted buyers in market to evade sales tax.
The directorate has also started sales tax audit and inquiry in cases of M/s ADN Traders, Peshawar, M/s KD Trading, Peshawar & M/s SG Asia Traders, Peshawar under sections 25 and 38 of the Sales Tax Act, 1990.
The initial findings of the proceedings reveal that registered persons are, prima facie, involved in tax fraud as defined in section 2(37) of the Sales Tax Act, 1990.
The taxpayers are commercial importers of consumer goods like battery, bulbs, cloth buttons, glass beads, padlock, school bags, etc, but declaring their sales to registered persons including the industrial units. All of them have claimed huge purchases and declared low sales. Most of the sales invoices are split into less than Rs 50,000 value to avoid compliance of section 73 of the Sales Tax Act, 1990.
