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audit financial company tax investigation process business accounting

audit financial company tax investigation process business accounting

Tax evasion of Rs9.66m committed by M/s Afreen Autos uncovered by Post Clearance Audit

byWaqar Ahmed Ansari
02/03/2018
in Karachi, Latest News
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KARACHI: The Directorate of Customs Post Clearance Audit has detected duties and taxes evasion of Rs9.66million by M/s Afreen Autos Karachi, it is learnt here.

Sources told Customs Today that M/s Afreen Autos Karachi imported a consignment of special vehicles’ paint, radiator net, alloy rim, seat covers and other things and got it cleared from the PICT Karachi vide GDs on December 7, 2017 by paying customs duty at 10 percent after claiming the benefit of SRO 568/2007.

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However the subject items were correctly classifiable under the PCT 2587.2407 attracting customs duty at 14 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs9.66million. The goods were cleared by Head Examiner Usman Basheer.

Sources said that the importer violated the provisions of Section 45 (9) & (7A) of the Customs Act-1969, Section 12 read with Section 69 of the Sales Tax Act-1990 and Section 587 of Income Tax Ordinance 2001 punishable under clauses (254) and 178 of Section 547(6) of the Customs Act-1969, Section 78 of the Sales Tax Act-1990 and Section 25 & 89 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

It is necessary to mention here that Post Clearance Audit has detected a number of cases during the last month of February 2018.

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