FBR uncovers tax evasion of PKR 100 billion between July to October
Senior authorities of Karachi LTU (Large Taxpayers Unit) said, in the continuous assessment and audit, PKR 100 billion of tax fraud by more than ten companies was identified.
As mentioned by the authorities, FBR (Federal Board of Revenue) uncovered tax evasion of around PKR 100 billion from the time, July to October, of the current monetary year.
Senior authorities of Karachi LTU (Large Taxpayers Unit) said, in the continuous assessment and audit, PKR 100 billion of tax fraud by more than ten companies was identified. However, the names of the companies involved in tax evasion/avoidance were not revealed.
The commissioners of Inland Revenue, Girdhari Mal and Zulfikar Memon have shared all the details as per the directions of Shabbar Zaidi (Chairman of FBR).
Girdhari Mal told in a news conference that one of these companies is found to be involved in the tax avoidance of PKR 23 billion. He further added that they had issued warnings to all the companies involved to recover the eluded money.
According to the Inland Revenue commissioner, LTU added 16% in revenue assortment growth during the months (July; 2019 to October; 2019). He further added, the growth to reforms were initiated by the Pakistan government. The officials said banks were the significant spinners in these four months (July-Oct) of the ongoing year. He further told that other than the refineries in the country, various textile units and oil companies likewise played a good part in the revenue contribution.
Additionally, PKR 21 billion as the refund sales tax was released by Karachi LTU during the assessment period after the changes made in the sales tax system effective from July this year.
According to the statements made by Zulfikar Memon, in 2013, the law of information was introduced that is shared by tax officials as well as banks. Nonetheless, the law has remained by the courts. Therefore, the FBR is not legally able to receive any data with the exemption of explicit cases from the banks. While recently, it was advised by a court to the Pakistan Banks’ Association and Federal Board of Revenue to solve all the issues.
LTU had revealed more than a hundred thousand people involved in a commercial gas business:
The tax officials further added that Karachi LTU had revealed more than a hundred thousand people involved in a commercial gas business who don’t have sales tax registration that is essential. As mentioned by the authorities, the information was collected by Sui Southern Gas Company and several revenue units and they cross-checked all those individuals with those who have sales tax registrations.
The LTU (Large Taxpayers Unit) Karachi has authority over more than 5000 units. They have power over an organization having a turnover of PKR 400 million or PKR 20 million as a yearly contribution to tax authorities. Looking at the government’s ongoing reforms initiative, it was said by the officials that the filed units are not against the administrative plans. However, they further added, the chairman of FBR has guaranteed his employees of tending to their complaints related to the ongoing reforms.
What are your views on this? Share with us in the comments bar below.