FBR Unearths Tax Evasion Worth Rs. 18 Billion in Karachi
The Federal Board of Revenue (FBR) has unearthed sales tax evasion of Rs. 18 billion by a corporate taxpayer during the last five years, reported a local media house.
According to the report, the Large Taxpayers Unit (LTU) Karachi discovered that the taxpayer did not declare its sales and purchases properly. LTU Karachi, a major revenue collecting arm of the FBR, has jurisdictions over big volume companies.
The report, quoting the sources, said that the tax evasion was discovered after detailed scrutiny of monthly sales tax returns filed by the taxpayer between 2015 and 2019. However, they didn’t mention the company’s name.
LTU said the discovery was made when the taxpayer’s sales tax returns were scrutinized ‘in depth’ revealing huge anomalies in declared sales. The taxpayer has been served with the statutory notice under the relevant provisions of Sales Tax Act 1990 and collection of evaded sales tax is expected, the unit said in a statement.
In another case, the LTU Karachi detected a taxpayer who claimed illegal brought forward losses of Rs. 21 billion. The revelation was made when the taxpayer’s past assessment record was assessed which revealed that the taxpayer claimed losses of Rs. 21 billion compared to actual assessed losses of Rs. 10 billion, said the report.
It further stated that the taxpayer was indulged in brought forward losses for the past six years. While this was allowed under the law, the scrutiny revealed that the taxpayer exaggerated the losses and was trying to dodge the tax authorities to reduce his income tax liabilities.
The sources quoted by the report said the unit will assess the income tax returns to be filed for the tax year 2019 and will make an addition to the income to recover the assessable tax. The quantum of income tax evaded by the taxpayer cannot be ascertained at this time.
Source: Pro Pakistani