KARACHI: The Directorate of Intelligence & Investigation (Inland Revenue) has against a registered person for issuing fake/flying invoices for the purpose of illegal input tax adjustment, which deprived exchequer of Rs40 million.
During investigation it was known that M/s Kotila Corporation is involved in generation and issuance of fake sales tax invoices to several registered persons which are being adjusted as input tax against the output tax and getting undue benefit and at the same time causing loss to exchequer.
Director General I&I Inland Revenue Haroon Tareen had this information of the scam, who formed a team comprising Director I&I Shams-ul-Hadi and Deputy Director Asif Abro and Audit Officer IR, Rashid Chundrigar to further investigate the issue. Resultantly, FIR has been lodged against Arshad Ali Khan s/o Sher Ali Khan.
Investigations revealed that sales tax invoices were issued to M/s Packages Ltd during July 2011 to June 2012. M/s Packages made payments to Kotila Corporation through 34 cheques worth Rs86.077 million, which were credited in the bank account fraudulently maintained in the name of M/s Kotila Corporation.
On further investigation, it was revealed that a person namely Arshad Ali Khan opened a fake bank account by claiming himself as the owner of M/s Kotila corporation and all the cheques were submitted in his account.
It may be mentioned here that owner of M/s Kotila Corporation Muhammad nor Muhammad had died in 2007 and since then the firm had seized to be operational.
It was further revealed that Arshad Ali Khan is also running dummy business in the name of ZM Traders, Al-Hamra Traders and Arshad & Company against his own CNIC.
Arshad Ali Khan is the actual culprit who is fraudulently running M/s Kotila Corporation as owner and is involved using the password for e-filling of sales tax returns along with beneficiaries/buyers who have individually and jointly committed the tax fraud by way of issuing fake sales tax invoices and adjusting inadmissible input tax on the basis of fake sales tax invoices and fake/bogus import.
FIR has been lodged and Arshad Ali Khan has been arrested. Further investigations are underway.