The Federal Board of Revenue (FBR) has uncovered a staggering tax fraudamounting to Rs314 billion, marking it as the largest tax evasion case inthe country’s history. This fraudulent scheme was orchestrated by afictitious entity known as K H & Sons, which existed solely on paper andwas registered under the name of Muhammad Kashif, a benami individual.
The revelation of this massive tax fraud came to light through the diligentefforts of the Director-General Internal Audit Inland Revenue team.
Remarkably, the fabricated company, K H & Sons, purported to be engaged inthe iron and steel business, but its documents listed addresses in variousmarkets such as Liaquat Market, Agri Market, and M A Jinnah Market.
This discrepancy raised suspicion about the true nature of the company’sactivities. Furthermore, it has come to light that this fraudulent companywas involved in a range of illicit activities beyond tax evasion.
Despite the glaring evidence of this colossal tax fraud, the FBR has notyet initiated any legal action to address the issue. Concerns have beenraised that the accused individuals may attempt to flee the country ifswift action is not taken to register a First Information Report (FIR).This delay in taking legal action is worrisome given the immense suminvolved in this tax evasion scheme. It is further claimed that it may belikely that some of the high and influential people may be involved in thescam.
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In a related development, the FBR recently arrested four individuals inconnection with a separate tax invoice scam worth Rs11 billion. Theapprehended suspects were part of a fake sales tax invoice network, withone arrested while filing false sales tax returns for dummy firms from hisresidence and another arrested at the PRAL Call Centre in Islamabad.
Additionally, the authorities seized Rs1.6 billion in fake output tax datafrom an accused official’s PRAL computer. These arrests highlight the FBR’sdetermination to crack down on tax evasion across the country