ISLAMABAD: The Federal Board of Revenue Intelligence and Investigation directorate Karachi has arrested two persons involved in over Rs12 billion two Fake & Flying Invoices Cases.
According to details, the Directorate of I&I IR Karachi in the last one week has lodged two FIRs in line with the nationwide crackdown against suspected business individuals on the above account involving billions of rupees revenue loss.
After inquiry, monitoring of different persons and discrete vigilance, a primary suspect in one of the FIR involved in the scam has been arrested and produced in the Court of Special Judge (Custom & Taxation), Karachi. According to details, I&I IR Karachi has also obtained seven days remand of the accused from court.
On the basis of investigation, and on pointation of the arrested person, search has been carried out by a team of Directorate at the office of an Advocate/ Tax consultant in a posh area of Karachi under court search warrant.
The said premises were unearthed during investigation which is used for issuance of fake /flying invoices and filing of dummy/bogus sales tax returns of various firms.
During search of Advocate office, certain very significant record/evidence including pre signed blank/unsigned cheque books of various firms, large number of rubber stamps of assorted companies, bank deposit slips of heavy cash amounts, sales tax returns and invoices of firms involved in fake /flying invoices scam in the shape of hard copies and soft data were recovered from said office along with Laptop and computer.
During the search, another suspect who was in contact with an already arrested accused and involved in supply chain of fake/flying invoices in the instant crime of claiming bogus/fake/inadmissible tax credit was also taken into custody.
Later on the second accused was also produced in court and a five days remand was obtained. Scrutiny of data/record of delinquent firms indicated that a large number of registered trades and businesses have taken undue benefit of such fake /flying invoices for claiming excessive credit of sales tax and to reduce their tax liability.
Interrogation with arrested accused persons further revealed that even big business entities and limited companies across the country have taken advantage of this fraudulent activity. The Directorate’s team of investigators is actively involved in examination and scrutiny of records and assistance from other agencies has also been sought in this regard.
Scrutiny of technical data of FBR IRIS Portal users involved in the instant crime indicated that it’s a trans province scam as a large number of firms registered in jurisdiction of Karachi who are not traceable on their initial declared local addresses but their sales tax returns are regularly uploaded/filed on IRIS system from different cities in Punjab specially Faisalabad, creating billions of rupees undue tax credit for organized business sectors without paying a single penny in the national exchequer.
Forensic analysis of computer data is also under process which would further reveal the role of other culprits involved in the scam.
Directorate has shown its resolve of zero tolerance against fake/flying invoice mafia and also advised business and trade to not involve in such illegal activity and distance themselves from unscrupulous elements as no one will be spared in this nationwide crackdown if found involved in fake/flying invoices activity.
The Directorate has already communicated a preliminary report to its Headquarter at Islamabad for similar action against such illegal fake/flying users across the country. It is also expected that with the stern action against such fake invoices users will have a positive impact on FBR revenue in near future.
