More firms found involved in Rs11b fraud

FBR extends scope of investigation, submits interim report in court

ISLAMABAD:

Around 58 traders and trading companies have been found allegedly involved in over Rs11 billion tax fraud case against Al-Junaid Impex, according to investigations conducted by the Federal Board of Revenue (FBR).

Documents available with The Express Tribune revealed that the FBR's Directorate of Internal Audit (Southern Region), Inland Revenue Karachi submitted an interim report in the court of special judge customs, taxation and anti-smuggling, Karachi.

According to the report, a first information report (FIR) was lodged on August 1, 2024 by the Directorate of Internal Audit, Inland Revenue Karachi against tax fraud of over Rs11 billion involving Al-Junaid Impex.

The scope of investigation was expanded to trace more people who had evaded tax payment. Preliminary probe revealed that those involved in tax fraud were working for some of the country's powerful business groups and families.

Details including the names of business groups, their National Tax Numbers, Computerised National Identity Card (CNIC) numbers and other information have been acquired and are under scrutiny.

Earlier, the FBR launched a major operation under its digitisation initiative, uncovering a tax fraud amounting to over Rs11 billion, and kicked off further investigation.

The tax fraud was spearheaded by a company run by a person named Muhammad Junaid, who, along with another individual named Ajmal, tried to deprive the public exchequer of the required taxes.

The document showed that another suspect, involved in the alleged fraud, was operating a company named Trade Zone. Suspect Junaid had opened a bank account at a bank branch in Machi Miani Market, Karachi, which was being used for dodging tax payments.

The FBR obtained details of the bank account and other information and registered an FIR against the suspects to expand the scope of investigation to expose the entire gang in the case.