MULTAN: The Federal Board of Revenue (FBR) Regional Tax Office Multan detected massive tax evasion of Rs 1.66 billion against two companies namely Pak-Arab Fertilizers and Fatima Fertilizers .
Chief Commissioner RTO Multan Hafiz Muhammad Jamil Owaisi have unearthed billions of rupees tax fraud in which two biggest fertilizer companies of the country was allegedly found involved in massive tax evasion of sales tax. It is one of the biggest tax evasion case detected in the history of Regional Tax Office Multan formed by Commissioner Hafiz Muhammad Jamil Owaisi during his assignment in RTO Multan.
Alleged Fatima Fertilizer Company Limited, which is also biggest manufacturer and supplier of fertilizer products in the country, has allegedly committed sales tax fraud. Fatima Fertilizer Company was booked on the charges of tax evasion of Rs 1,668 million and concealing the stock of 2,64,443.500 metric tons from tax authorities which was manufactured in Fatima Fertilizers Sadiqabad and Pak-Arab Fertilizers Factory Multan.
The Federal Board of Revenue Regional Tax Office Multan has done thorough investigation against Fertilizer magnates before taking action against them. The sales tax wing of the Federal Board of Revenue RTO Multan unearthed a fraud of Rs 1.668 billion in sales tax, which was done by not paying sales tax on fertilizers weighing 126,255 metric tons of Fatima Fertilizers and 138,188.500 metric tons of Pak-Arab Fertilizers.
Tax authorities of RTO Multan have formed two FIRs against influential business tycoons including Mian Faisal Mukhtar Sheikh, Mian Fawad Ahmed Mukhtar, Sheikh, Mian Fazal Ahmed, Mukhtar Sheikh , Mian Faisal Mukhtar Sheikh and Arif Habib ( Directors).
But no arrests have been made so far from Federal Board of Revenue RTO Multan. Official sources said that Deputy Commissioner Inland Revenue Multan Abid Hussain Gulshan lodged FIR No.01/2015 on November 18, 2015 with the approval of Chairman of Federal Board of Revenue. In his complaint DC-IR alleged that Directors of Pak-Arab Fertilizers Factory Multan Mian Faisal Mukhtar, Mian Fawad Mukhtar and Arif Habib had evaded sales tax of Rs 909.11 million by concealing the stock of 138,188.500 metric tons which was stored in different ware-houses but this stock was not shown in sales registration profile.
They were involved in tax fraud in term of section 2(37) and evasion of sales tax in violation of authorities of Section 2(9) ,2(20), 2(33), 2(44), 3,6, 23 and 26 of the sales tax act 1990. read with rule 7 of charter of sales tax rules 2006 notified SRO 555(1)/2006 dated 05-06-2006 .The second FIR No.02/2015 reveals that Directors of Fatima Fertilizers Factory named Fawad Ahmed Mukhtar Sheikh,Fazal Ahmed Mukhtar Sheikh, Faisal Mukhtar Sheikh and Arif Habib had evaded huge amount of sales Tax Rs.75,92,232 by concealing the stock of 1,26,255 m / tons. They were booked under sections 2(9), 2(20), 2(33), 2(44), 3,6, 23 and 26 of the sales tax act 1990. Sales tax evasion amount becomes almost Rs 1.66 billion in both cases detected .
After registering two first information reports (FIR) against four influential persons in massive tax evasion of Rs 1.66 billion by the tax authorities, Officials of Regional Tax Office Multan is going to also take permission from Federal Board of Revenue about further investigation against accused other companies including Reliance Weaving Mills, Fatima Sugar Mills, Reliance Commodity, Fatima Energy and their other companies in order to highlight their tax evasion.
