Tax evasion worth Rs460 million unearthed

ISLAMABAD: The Directorate of Intelligence and Investigation, Inland Revenue (I&I-IR), Lahore conducted a raid on the business premises of a steel mill located at Ferozwala, Sheikhupura district and unearthed an estimated tax evasion of Rs400 million.

The steel mill was engaged in the manufacturing of steel bars, ingots and billets.

During the initial investigation, it was revealed that the steel mill had filed nil sales tax/FED in returns for a year; however, an electricity meter installed at the premises showed huge consumption of electricity during that period.

On the basis of initial scrutiny of available information and after fulfilling legal formalities, a raid was carried out and relevant documents and records have been impounded.

According to the initial estimates, the tax evasion of Rs400 million has been detected in the case. The record is under scrutiny at the Lahore Directorate and further legal action will be taken to recover the evaded taxes and duties.

In a similar operation, the Directorate of Intelligence and Investigation, IR Multan raided a unit located in the Industrial Estate, Multan under Section 38 and 40 of the Sales Tax Act 1990.

The unit was engaged in the manufacturing of polypropylene bags. After scrutiny of record, it transpired that the unit was blacklisted by the Federal Board of Revenue (FBR) but despite that, it was engaged in the manufacturing of products for a long time.

The sales tax number was also not got restored by the unit. According to the initial estimates, the tax evasion of Rs60 million has been found in the case.

Further legal action will be taken after the thorough scrutiny of the record under the relevant provisions of the law.

In accordance with the instructions of the Directorate General of Intelligence and Investigation IR, Islamabad, such operations across the country would continue to detect the tax fraud and revenue leakages because the FBR is committed to implement its zero tolerance policy against the tax evasion.