Karachi, September 12, 2023 – The Regional Tax Office (RTO) Karachi has taken a significant step in the fight against tax fraud by registering a First Information Report (FIR) to initiate formal legal proceedings against individuals involved in a massive fake sales tax invoice scam, which has led to a staggering loss of approximately Rs 312 billion to the national exchequer.
(more…)Tag: fake invoices
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FBR Launches Aggressive Initiative to Combat Fake and Flying Invoices
Karachi, September 7, 2023 – The Federal Board of Revenue (FBR) has taken a decisive step to tackle the growing menace of fake and flying invoices, a practice that has been undermining government revenues and integrity in tax administration. This initiative, announced through Sales Tax General Order No. 12 of 2023, outlines a comprehensive plan to confront this issue head-on.
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Mastermind Behind Fake Invoice Scam Apprehended by Karachi’s IR Intelligence
The Directorate of Intelligence and Investigation (I&I) of Inland Revenue in Karachi has successfully apprehended the mastermind behind a colossal sales tax scam involving the creation and use of fake and flying invoices.
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FBR evolves strategy to combat fake invoices
ISLAMABAD: Federal Board of Revenue (FBR) to review performance of tax offices regarding action taken against fake and flying invoices which caused huge monetary losses to the exchequer in the shape of issuance of bogus sales tax refunds.
Sources on Saturday said that FBR chairman Muhammad Javed Ghani would chair an important meeting during his visit to Karachi scheduled for February 22, 2021.
There is one-point agenda of the meeting i.e. “Fake invoices – Action taken so far and future strategy to combat it.”
All chief commissioners of the tax office in Karachi have been asked to attend the important meeting.
The sources said that the chief commissioners would make presentations on issues of fake invoices and strategy to combat the same.
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CRTO Karachi sets up monitoring cell to identify fake, flying invoices
KARACHI: In order to identify taxpayers involved in fake and flying invoices, a monitoring cell has been established at Corporate Regional Tax Office (CRTO) Karachi.
The cell has been established keeping in view the declining trend in sales tax payments during first quarter (July – September) 2019/2020.
The monitoring cell has been assigned to identify cases involved in fake and flying invoices, fake transactions, sales suppressions and streamline tax mechanism.
Jafar Raza Kazmi, Commissioner Inland Revenue, Zone-IV of the CRTO has been assigned to supervise the monitoring cell.
According to a notification issued on Thursday, the cell would perform the following functions:
— To analyze / monitor sales tax monthly sales tax returns to identify cases where action under Section 38 of the Sales Tax Act, 1990 is required to be taken on the basis of abnormalities causing huge decline in sales tax payment etc.
— The cell shall prepare desk audit report showing details of records / data scrutinized discrepancies observed and potential revenue involved.
— After due diligence, the cell shall take action under Section 38 of the Sales Tax Act, 1990 against the person as per law and submit the detailed report with impact of revenue to the chief commissioner CRTO Karachi.
The monitoring cell will focus and take such cases for action under Section 38 of the Sales Tax Act, 1990, which may yield substantial revenue.
The cell has been strictly advised that action in specific cases should be taken with reasonable interval of time. The exercise should not be made frequently and be restricted to cases involving sizeable revenue leakages.
Section 38: Authorised officers to have access to premises, stocks, accounts and records –
Sub-Section (1) Any officer authorised in this behalf by the Board or the Commissioner shall have free access to business or manufacturing premises, registered office or any other place where any stocks, business records or documents required under this Act are kept or maintained belonging to any registered person or a person liable for registration or whose business activities are covered under this Act or who may be required for any inquiry or investigation in any tax fraud committed by him or his agent or any other person; and such officer may, at any time, inspect the goods, stocks, records, data, documents, correspondence, accounts and statements, utility bills, bank statements, information regarding nature and sources of funds or assets with which his business is financed, and any other records or documents, including those which are required under any of the Federal, Provincial or local laws maintained in any form or mode and may take into his custody such records, statements, diskettes, documents or any part thereof, in original or copies thereof in such form as the authorised officer may deem fit against a signed receipt.
Sub-Section (2): The registered person, his agent or any other person specified in sub-section (1) shall be bound to answer any question or furnish such information or explanation as may be asked by the authorised officer.
(3) The department of’ direct and indirect taxes or any other Government department, local bodies, autonomous bodies, corporations or such other institutions shall supply requisite information and render necessary assistance to the authorised officer in the course of inquiry or investigation under this section.