FBR's intelligence wing uncovers tax evaders' network

Officials claim detection of tax theft of Rs10 billion via the registration of fake industrial units

KARACHI: The Directorate of Intelligence and Investigation - Inland Revenue (I&IIR) claimed on Thursday to have unearthed a "country-wide network" involved in the tax theft of Rs10 billion through the registration of fake industrial units.

Sources affiliated with the Federal Board of Revenue's intelligence wing, speaking on condition of anonymity, disclosed to The Express Tribune that their initial investigation had revealed that a wide organised crime network, operating under the name of fake industrial units, has been issuing fake and flying invoices, causing a loss of billions to the national exchequer.

As part of the initial investigation, I&IIR has traced 10 of these fake industrial units in Karachi, namely Shahid Enterprises, Hashmi Traders, Rizwan Enterprises, Lucky Corporation, Zaid Enterprises, Zahid and Company, Khatri Enterprises, SSS Expo and A1 Packages, the sources revealed. These units provided the addresses of various residences as that of their offices, which do not exist, for registration with the tax department, the sources said.

According to sources in I&IIR, transactions worth billions were conducted via the companies' accounts but none of them have paid any taxes.

The spokesperson for I&IIR, Nadeem Baig, said while talking to The Express Tribune that a special team had been constituted to conduct raids for arresting the "masterminds behind the scam." The spokesperson claimed that it was also found that some influential figures have been involved in the fraudulent practice, adding that their names have not been revealed.

He further said that an operation for uprooting elements causing losses to the national exchequer through the issuance of fake and flying invoices was underway, as per the directives of Intelligence and Investigation Director-General Bashirullah Khan Marwat and Karachi I&IIR Director Asem Iftikhar.