Fake, flying invoices: IR intelligence unearths mega sales tax evasion

Fake, flying invoices: IR intelligence unearths mega sales tax evasion

ISLAMABAD: The Directorate of Intelligence and Investigation, Inland Revenue, Faisalabad has unearthed huge sales tax evasion and arrested culprits for issuing fake and flying invoices.

A spokesman of Federal Board of Revenue (FBR) on Wednesday said that I&I IR Faisalabad had arrested proprietor of M/s SAYTEX INTERNATIONAL, one of the major culprits running the racket of fake and flying invoices, causing huge loss of revenue to the national exchequer.

The directorate unearthed a big sales tax evasion scam of issuing/adjusting fake and flying invoices involving tax fraud of millions of rupees.

Accordingly, prosecution proceedings against the members of the fraudsters’ gang were initiated and the First Information Report (FIR) was lodged against M/s Arrow International, its buyers, suppliers and other beneficiaries under section 37(a) of the Sales Tax Act 1990.

The person arrested had issued fake invoices worth 104.446 million to M/s Arrow International and thus defrauded payment of due taxes thereon.

Imran Zafar, Deputy Director, who arrested the accused has obtained physical remand of the accused from the learned Special Judge (Customs, Taxation & Anti-Smuggling), Lahore. The accused is currently under further investigation.

Investigation from arrested persons subsequently led the Intelligence and Investigation Directorate to identification of real culprits behind establishment and running of this network of tax fraudsters involving 65 units and total invoice value amounts to Rs.1.3 billion.