KARACHI: Customs Authorities have filed a complaint against a city businessman, accusing him of a major tax evasion scheme involving the import of textile fabrics worth nearly Rs. 600 million.
The case has been filed by the Directorate of Post Clearance Audit against Adnan, the owner of a firm called M/s. Adnan Enterprises. The allegations state that the businessman fraudulently claimed to be a manufacturer to illegally avoid paying over Rs. 60 million in taxes.
According to the complaint, the company imported large quantities of assorted fabrics, including polyester pile and shirting fabric, through 24 different shipments. By claiming the status of a registered manufacturing unit, the owner was able to claim an illegal exemption on sales tax and a reduced rate on income tax, avoiding a total of Rs. 60,062,440.
When an audit team visited the company’s registered address to verify its manufacturing facility, they found the premises to be non-existent. The address in the SITE area of Karachi was occupied by two different businesses—a garments company and a storage godown for jackets.
One of the businesses at the address told the audit team they had a tenancy agreement for the space, and there was no sign of M/s. Adnan Enterprises operating there.
Following the physical verification, authorities sent audit notices to the company demanding a response, but officials say the importer failed to provide any evidence of having a manufacturing facility or to justify their position.
The complainant, an Appraising Officer, has stated that the accused is involved in a “fiscal fraud” by misusing a false manufacturer status. The case has been lodged in court, and officials say a further investigation is ongoing. The role of the customs clearing agent used for the imports is also under scrutiny.
Officials said the action was taken on the instructions of Director General Yaqoob Mako. A dedicated team from the Post Clearance Audit department, including Director Afzaal Watto, Additional Director Tauseef Gorchani, and Deputy Director Shakeel Ahmed, has been making concerted efforts to prepare such cases in order to secure government revenue.