KARACHI: Power Cement Limited (NTN:0700886-4), under the jurisdiction of the Large Tax Office Karachi, has been implicated in a tax fraud case amounting to Rs700 million. The company allegedly used fake sales tax invoices from fraudulent firms in 2022. These firms are named in FIR No:01/2024, filed by the Directorate of Internal Audit-IR Karachi in the case of Al-Junaid Impex Karachi.
The fraudulent supply chain originated from M/S Trader Zone, whose owner, Ajmal Khan, passed away in 2019, according to records from Union Council No:215 Karim Block, Allama Iqbal Town Lahore. This case also involves income tax concealment.
Ongoing investigations aim to uncover more prominent names in the cement sector that have used fake invoices from these fraudulent firms. During these transactions, no physical movement of goods occurred, and funds were merely routed through bank accounts to evade the law and falsely comply with section 73 of the Sales Tax Act 1990. Ajmal Khan, being deceased, could not have initiated a supply chain of coal, which is required for fake invoices in the cement sector.
The case was uncovered through the diligent efforts of Director Internal Audit-Inland Revenue Karachi, Muhammad Eijaz Khan, Additional Director Asif Ali Abro, and Investigation Officer Dhani Bux.