Karachi, February 28, 2025 – The Medium Tax Office (MTO) Karachi has taken decisive action against tax fraud by sealing an outlet of Oaks Pakistan for issuing fake sales tax invoices.
This enforcement measure highlights the strict oversight of MTO Karachi in ensuring tax compliance and preventing fraudulent activities.
According to sources at MTO Karachi, the outlet was found to be issuing unverified invoices, prompting the tax authority to impose stringent penalties. The action was carried out under the directives of the Chief Commissioner Inland Revenue, MTO Karachi, and the Commissioner Zone-II, demonstrating the office’s commitment to upholding tax regulations.
As an integral part of the Federal Board of Revenue (FBR), MTO Karachi plays a crucial role in revenue collection and enforcement of tax laws. The taxpayer, categorized as a Tier-1 retailer, was discovered to be issuing unverified invoices while failing to integrate with the FBR Dashboard. Despite collecting sales tax from customers, the retailer did not deposit the collected amount into the government exchequer, leading to this strict regulatory response.
The authorities at MTO Karachi have confirmed that the outlet will remain sealed until corrective actions are taken. These include the payment of due taxes and the implementation of verified invoicing systems to ensure full compliance with tax laws. This move serves as a warning to other retailers engaging in similar fraudulent practices.
To strengthen compliance and prevent tax evasion, the FBR recently amended sales tax rules, granting tax authorities greater power to enforce regulations, including the sealing of business premises in cases of Point of Sale (POS) integration violations. This policy underscores the government’s commitment to curbing tax fraud and enhancing transparency in business transactions.
The enforcement actions taken by MTO Karachi reaffirm its dedication to maintaining a fair tax system. By ensuring that businesses comply with tax laws, MTO Karachi not only secures revenue for the national exchequer but also fosters a level playing field for honest taxpayers. Business owners are urged to adhere strictly to tax regulations to avoid severe consequences.
