Karachi, June 23, 2023 – The Directorate of Intelligence and Investigation (Inland Revenue) – I&I IR, Karachi has intensified its efforts to combat the issuance of fake and flying sales tax invoices by the fashion designers.
In a recent development, legal action has been initiated against a prominent chain of fashion designers in Karachi, and a First Information Report (FIR) has been filed in the court of Special Judge Customs & Taxation Karachi.
READ MORE: IR Intelligence Uncovers Massive Sales Tax Evasion by Esteemed Company
The accused company’s Director has sought refuge in the court proceedings. However, the court has directed the Director to cooperate with the relevant authorities during the investigation. The investigation is being conducted by the anti-fraud agency of the Inland Revenue.
According to the Federal Board of Revenue (FBR), a significant number of fashion designers have been exploiting tax credits through the use of fraudulent and fictitious invoices. These unscrupulous practices enable them to manipulate their sales tax liabilities by creating the illusion of legitimate banking channel transactions.
The agency believes that additional individuals involved in fraudulent activities within the fashion designers’ supply chain across the country will be apprehended soon, as raids are currently underway.
Startlingly, the payment trail within the fashion designers’ sector has led authorities to uncover connections with fabric smugglers operating from the Sust/Gilgit Baltistan border, with a base in the capital city of Islamabad.
READ MORE: FBR Issues POS Invoices Worth Rs540 Billion, Takes Steps towards Digitalization
The Directorate of Intelligence and Investigation has demonstrated its determination to eradicate the menace of the fake invoice mafia, treating them as fiscal terrorists, as stated in a press release.
