The Federal Board of Revenue (FBR) has taken substantial measures to combat fraudulent activities involving phony invoices in the coal industry. In this article, we’ll investigate how the FBR has made arrests and initiated actions to address this issue.
The FBR Directorate of Inland Revenue Intelligence & Investigation, Islamabad, has recently made two arrests in accordance with Section 37A of the Sales Tax Act of 1990.
These arrests are part of a larger endeavor to combat the problem of false and fictitious invoices, which can result in tax fraud and revenue loss.
In Islamabad’s Sector F-10, there have been reports of a working office within a residential complex. This office was allegedly involved in forging invoices while professing to supply cement factories with lignite. Such conduct may result in illicit financial profits at the expense of the national treasury.
The Directorate responded swiftly by conducting a search of the location. During this operation, a First Information Report (FIR) was filed against a tax fraudster associated with the operation. This fraudulent activity is estimated to have resulted in a revenue loss of approximately Rs. 95 million.
While the search yielded crucial evidence, the principal officer of the company was not present at the office during the operation. Therefore, efforts are being made to locate and apprehend this individual, who is believed to have played a key role in the purported tax fraud conspiracy.
The accused were brought before the Special Court in Rawalpindi, where they were granted a seven-day physical remand to facilitate further investigations.
This action is anticipated to cast light on the participation of other individuals in similar fraudulent activities, such as the creation of false and floating invoices.