LTU Karachi detects mega tax evasion of Rs18 billion by a company

LTU Karachi detects mega tax evasion of Rs18 billion by a company

KARACHI: Large Taxpayers Unit (LTU) Karachi has detected mega tax evasion to the tune of Rs18 billion by a company.

The unit, which is the largest revenue contributor towards total Federal Board of Revenue (FBR)’s total collection, issued a statement on Monday saying that it had detected evasion of sales tax to the tune of Rs18 billion.

“This discovery was made, when a taxpayer’s sales tax returns were scrutinized in depth revealing huge anomalies in declared sales.”

The LTU Karachi further said that the taxpayer had been served with the statutory notice under the relevant provisions of Sales Tax Act, 1990.

The unit further hoped to recover the evaded amount following the service of the notice and other legal formalities.

The LTU Karachi has jurisdiction over companies having huge turnover and paying significant amount as tax revenue.

The statement did not disclose the name of the taxpayer but the evaded amount shows the company might be belonged to one of those sectors on which the economy relied upon.

The LTU Karachi has jurisdictions over companies active in sectors including: oil market companies, exploration and production companies, banks, insurance, sugar, textile, cement etc.

The statement also pointed out another big case of illegal/unauthorized brought forward losses by a company in order to reduce the income tax liability.

The LTU Karachi detected huge tax evasion by the taxpayer, who claimed unauthorized/illegal brought forward losses to the tune of Rs21 billion.

“This revelation was made, when taxpayer’s past assessment record was probed in detail, whereby it transpired that against actual assessed losses of Rs10 billion, the taxpayer claimed losses to the tune of Rs21 billion resulting into over claim of losses to the tune of Rs11 billion.”

This disclosure would result into huge tax payments by the taxpayer during current and future tax years, the statement added.

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