Karachi: The Directorate of Internal Audit-Inland Revenue in Karachi has submitted an interim challan in a significant tax fraud case involving Al-Junaid Impex. The firm, operating as a domestic “shell” company, obtained registration with the Federal Board of Revenue (FBR) through fraudulent means, exploiting misrepresentation.
The case centers around Al-Junaid Impex’s suspicious tax profile. The firm, led by Muhammad Junaid, allegedly evaded sales tax by selling coal (HS Code: 2701) without genuine purchases or substantial payments to the national exchequer. The initial FIR, dated August 1, 2024, implicates government revenue of approximately PKR 11,312,755,174, with additional default surcharge and penalties pending assessment.
Tax fraud under the Sales Tax Act 1990 is a technically complex offense often orchestrated by organized mafias. These fraudulent entities exploit statutory loopholes, creating a network of fake firms to generate “fake input sales tax.” This practice aims to minimize their sales tax liability. Transactions within this network involve paper trails rather than actual goods movement, deceiving authorities.
The Directorate’s investigation continues, focusing on Al-Junaid Impex’s alleged bogus purchases from M/S Trader Zone. The case sheds light on the abuse of legal processes and highlights the need for vigilance in broadening the tax base while maintaining integrity.