Federal Board of Revenue (FBR) chairman Javed Ghani ordered all FBR field offices on Saturday to speed up anti-tax evasion operations.
A statement from FBR states that individuals involved in false / flying bills and tax evasion will be treated in strict accordance with the law.
The IRS said the organization will also take immediate action against its own employees involved in criminal activity.
In accordance with the instructions of the President of the FBR, the holder of the Community income arrested the owner of Fazal Awais Textiles Syed Muhammad Azhar, who was involved in tax fraud by issuing false and flying bills to a nonexistent entity called Arrow International.
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Management has also discovered a $ 1 million tax evasion in connection with the issuance and adjustment of false and flying invoices.
Accordingly, a tax evasion investigation has been initiated against the perpetrators and an initial information report (FIR) has been filed against Arrow International, its buyers, suppliers and other beneficiaries under section 37A of the 1990 Sales Tax Act.
The investigation revealed that Arrow International is a non-existent entity registered for the purpose of issuing false / flying invoices and to facilitate the payment of applicable VAT by buyers and suppliers.
In addition, 65 registered persons reported fictitious purchases in order to avoid taxes due. These 65 registered persons have evaded a tax of Rs 134,453 million.
As a result, a tax fraud lawsuit has been filed under Section 37A in conjunction with Section 2 (37) of the Sales Tax Act 1990 against Arrow International, its buyers and suppliers and other recipients.
FBR has asked people to come forward and reveal the identities of those involved in tax evasion. The IRS has announced that it will reward such whistleblowers as part of its compensation rules, while keeping the whistleblower hidden.
