Karachi, December 1, 2024 – Chief Financial Officers (CFOs) of companies implicated in submitting fake sales tax invoices are under strict scrutiny by the Federal Board of Revenue (FBR). The national tax agency has vowed to take severe actions against individuals and organizations involved in such fraudulent practices, which have caused significant losses to the national exchequer.
According to FBR officials, the agency remains resolute in its policy to act against CFOs who verify monthly sales tax returns containing fake or “flying” invoices. Legal provisions empower the FBR to arrest such individuals, emphasizing a no-tolerance approach to tax fraud.
While the FBR refrains from publicizing the names of accused CFOs, the focus is on recovering the evaded tax amounts along with penalties, additional taxes, and default surcharges. Officials clarified that public disclosures would only follow if recovery efforts fail. The current crackdown is unprecedented in Pakistan’s history, targeting senior executives and key players in the corporate sector, particularly those in large organizations complicit in sales tax fraud.
Political backing has strengthened the FBR’s resolve, enabling enforcement against influential individuals and companies involved in tax evasion. In one notable case, a prominent textile exporter in Faisalabad was compelled to deposit a substantial sum, including the evaded principal tax and associated penalties, signaling the FBR’s seriousness in combating fraud.
The revenue loss from such schemes is estimated to run into hundreds of millions of rupees. The crackdown forms part of a nationwide campaign to dismantle organized networks of fraudsters and beneficiaries while enhancing overall tax compliance. Arrests of CFOs from major textile companies mark a significant milestone in the FBR’s efforts to ensure accountability within influential sectors.
FBR sources revealed that CFOs implicated in such frauds have been urged to settle their outstanding liabilities, amounting to billions of rupees, including principal amounts and penalties, to avoid legal prosecution.
This aggressive stance by the FBR demonstrates its commitment to curbing tax fraud and safeguarding public revenue, setting a new precedent for transparency and accountability in Pakistan’s corporate and taxation landscape.
