Islamabad (By Ehsan Bukhari):
In a significant development, the Federal Board of Revenue (FBR) has uncovered a massive tax evasion scandal amounting to Rs. 1,233 billion. The scam involves major business groups, including those dealing in battery-operated vehicles and other high-value sectors.
According to FBR sources, many sales tax-registered individuals and companies have been found involved in issuing fake and flying invoices to evade taxes. In response, the FBR has devised a comprehensive crackdown plan targeting these fraudulent activities.
The newly introduced procedure includes suspension of registration and blacklisting of traders found guilty of tax fraud. Before blacklisting, a seven-day show-cause notice will be issued, allowing accused individuals to present their defense. Arrests, however, will only be made after mandatory consultations.
FBR Chairman revealed that the fraud predominantly involves the elite business class. As per the protocol, arresting any accused will require prior consultation with at least two representatives from the trader community. Additionally, formal approval from the Member Inland Revenue Operations will be mandatory before proceeding with any arrest.
The FBR emphasized that not only will traders be scrutinized, but internal facilitators, including officials and staff members involved in enabling the fraud, will also be held accountable. A thorough audit will be conducted, analyzing suspicious transactions, tax returns, and related records.
The Assessment Processing Cell will identify suspicious invoices, after which two officers will analyze the data of the accused trader. If financial benefit through fraudulent means is established, an FIR will be registered.
Commissioners of Inland Revenue have been authorized to approve the initiation of inquiries; however, arrests cannot be made until investigations are completed.
This marks one of the largest tax evasion investigations in Pakistan’s recent history, signaling a serious move by the FBR to clamp down on financial fraud and broaden the tax base.
