FBR raids tax evading steel mill

Initial estimates put the evaded tax figure at more than Rs400 million

ISLAMABAD:

Federal Board of Revenue (FBR) has raided a steel mill involved in alleged taxevasion and seized their records. Officers from FBR’s Directorate of Intelligence andInvestigation (DII), Lahore and Multan region took action against the steel millsinvolved in tax evasion of more than Rs46 crore.

As part of an ongoing campaign to curb tax evasion, FBR’s Directorate ofIntelligence and Investigation – Inland Revenue (IR) Lahore raided a steel mill inFerozewala, Sheikhupura district, suspected of tax evasion of Rs40 crore. The mill produced iron rods and blocks at its industrial facilities.

According to preliminary investigation, the steel mill had reported zero sales tax and federal excise duty in its annual statement while heavy power consumption was recorded throughout the year.

Based on the initial information available and keeping all legal requirements into perspective, the business premises of the steel mill were raided and relevant documents were confiscated. According to initial estimates, the mill had evaded Rs40 crore in taxes. Further investigations are underway and the stolen tax will be recovered as per law.

In another operation of a similar nature, Directorate of Intelligence and Investigation, IR Multan, took action against a polypropylene bag manufacturing unit at the Multan Industrial Estate under Sections 38 and 40 of the Sales Tax Act, 1990. Examination of seized documents revealed that the unit had been blacklisted by the FBR.

Despite the blacklisting, the unit had been running large scale operations for a long time and did not restore its sales tax number with the FBR. Large quantities of relevant records were recovered during the raid and according to initial estimates, tax evasion of Rs60 million had taken place.

Operations are underway across the country on the instructions of the Directorate General of Intelligence and Investigation – Inland Revenue Islamabad to prevent tax fraud and loss of revenue, as the FBR says it has a clear zero tolerance policy in this regard.