The Federal Board of Revenue’s (FBR) Intelligence and Investigation Inland Revenue has detected a big Cement company’s supplier involved in fake and flying invoices worth millions of rupees.

According to a statement issued by FBR the Directorate of Intelligence and Investigation, Inland Revenue has lodged an FIR before the Special Judge (Customs and Taxation), Karachi against M/s Al-Abbas Traders on the issue of fake and flying invoices, in which one M/s. Z.A Choice Import and Export (SMC Private) Ltd is one the suppliers and issued fake invoices to M/s. Lucky Cement.

Notices were issued, and the management of M/s. Lucky Cement Ltd has agreed to deposit the evaded amount involved on fake and flying invoices and accordingly has deposited the amount of input tax amounting to Rs. 85,971,785/- in the Federal Treasury.

According to the statement issued by Lucky Cement, a company Named ‘Al-Abbas Traders’ has issued fake invoices to evade tax to another company ‘ ZA Choice’ which supplied coal to Lucky Cement. A
s a consequence, such inquiries have been received by all buyers of domestic coal for the last two years from Inland Revenue.

Lucky Cement Limited has complied with all procedures relating to sales tax claims and only purchased coal from vendors who were registered with FBR and appeared under the active category. As an abundant precaution, the Company had also obtained a copy of the sales tax return submitted by the supplier against which input tax had been claimed.

FBR systems failed to detect non-compliant sellers and hence resorted to harassing compliant taxpayers providing huge tax and export revenues for the Country, said the statement

The IandI officials of FBR failed to produce any evidence of wrongdoing by the Company and also failed to present any material evidence based on which the Company was being implicated in the matter. The company representatives repeatedly requested for documents/information based on which the liability of the Company had been determined however, the IandI officials resor
ted to threats to arrest senior officials of the company and coerced and harassed the employees to recover the amount of sales tax.

The Company is looking at taking appropriate legal measures against such illegal and unlawful methods adopted by IandI officials to extort undue amounts from the Company.

The Directorate of IandI – IR, Karachi is striving hard to nab the persons who are defeating the national exchequer.

Source: Pro Pakistani