ISLAMABAD – The Federal Board of Revenue (FBR) has reportedly unearthed ahuge tax fraud scam from the international contractors working on Pakistan.
FBR has traced out an organised alleged tax evasion of multi-billion rupeesby international contractors in multilateral and bilateral donors fundedprojects in Pakistan that is continuing unabated for the last several years.
Official documents available with The News also prove modus operandiinvolved and its operational mechanism first time in the country’s historyby the tax department that how aid money of millions of dollars went backinto pockets of donors and their attached international contractors throughdifferent ways and means instead of being utilised here on the poor andvulnerable segments of society in recipient countries especially in case ofPakistan.
A complete tale of this unearthed alleged scam done by the FBR on the USAIDfunded projects came on surface when the FBR conducted recent exercise totrace out “high net worth” cases of tax evasion in its ongoing efforts tobroaden the tax base.
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At a time when the FBR is facing massive tax shortfall of over Rs100billion in first five months of the current fiscal and the government isconsidering introducing mini budget before the Parliament next month, theinternational contractors are allegedly found involved in tax evasionthrough huge payment to expatriate employees without tax deduction atsource, inadmissible head office expenses and non-compliance of withholdingtax regime in Pakistan thus evading billions of rupees due taxes.
