New Revelations made in one of the largest ever tax fraud in Pakistan history

New Revelations made in one of the largest ever tax fraud in Pakistan history

The Federal Board of Revenue (FBR) has uncovered a staggering tax fraud amounting to Rs314 billion, marking it as the largest tax evasion case in the country's history. This fraudulent scheme was orchestrated by a fictitious entity known as K H & Sons, which existed solely on paper and was registered under the name of Muhammad Kashif, a benami individual.

The revelation of this massive tax fraud came to light through the diligent efforts of the Director-General Internal Audit Inland Revenue team.

Remarkably, the fabricated company, K H & Sons, purported to be engaged in the iron and steel business, but its documents listed addresses in various markets such as Liaquat Market, Agri Market, and M A Jinnah Market.

This discrepancy raised suspicion about the true nature of the company's activities. Furthermore, it has come to light that this fraudulent company was involved in a range of illicit activities beyond tax evasion.

Despite the glaring evidence of this colossal tax fraud, the FBR has not yet initiated any legal action to address the issue. Concerns have been raised that the accused individuals may attempt to flee the country if swift action is not taken to register a First Information Report (FIR). This delay in taking legal action is worrisome given the immense sum involved in this tax evasion scheme. It is further claimed that it may be likely that some of the high and influential people may be involved in the scam.

In a related development, the FBR recently arrested four individuals in connection with a separate tax invoice scam worth Rs11 billion. The apprehended suspects were part of a fake sales tax invoice network, with one arrested while filing false sales tax returns for dummy firms from his residence and another arrested at the PRAL Call Centre in Islamabad.

Additionally, the authorities seized Rs1.6 billion in fake output tax data from an accused official's PRAL computer. These arrests highlight the FBR's determination to crack down on tax evasion across the country