Rs11.6 billion tax fraud unearthed, four arrested

Pakistan Revenue Automation Limited facilitation officer, ex-employee among suspects

KARACHI:

Tax officials have apprehended four suspects for their alleged involvement in a tax fraud that inflicted losses to the tune of 11.6 billion on the national treasury.

The arrests by the Directorate of Intelligence and Investigation of Federal Bureau of Revenue are part of a wider campaign targeting a group involved in generating counterfeit sales tax invoices.

As per sources, one of the suspects, who had been submitting fraudulent sales tax returns for fictitious companies online, was apprehended in Faisalabad on technical grounds. This suspect had been filing bogus sales tax returns on behalf of various non-existent firms.

The second suspect, connected to the same scam, was arrested at the Pakistan Revenue Automation Limited (Pral) Call Centre in Islamabad. This individual was employed as a facilitation officer at Pral and was found to be providing user ID passwords for inactive sales tax registered units to agents involved in the fake invoice syndicate, all for personal financial gain.

Read Tax scam of Rs53b surfaces in FBR

During the investigation fake output tax data worth a staggering Rs1.60 billion was discovered on the accused's official computer. This data had been fabricated by the suspect with the intent of passing it on to the fake invoice mafia through the FBR's E-filing system.

The suspect later led the authorities to a broker in Karachi, who was promptly arrested based on technical information.

A fourth suspect was formerly employed at Pral but dismissed in 2014 for unlawful activities. Subsequently, he pursued a career in law, becoming a member of the District Bar Faisalabad. He was detained there.

Further inquiries have revealed that the suspects communicated with each other through mobile phones and WhatsApp, sharing falsified input demand and supply data in the supply chain. Sources confirm that all four suspects are currently in judicial custody, following physical remand. Further investigation is underway.

Published in The Express Tribune, September 11^th, 2023.