ISLAMABAD: The Federal Board of Revenue (FBR) has asked field formation for the enforcement of systematic raids on tax evaders and non-compliant persons across the country, a high ranking official told Dawn on Wednesday.

The direction comes amid reports that some big taxpayers are involved in tax evasion and have been identified for different actions under Section 203 of Income Tax Ordinance and Anti-Money Laundering Act 2010.

“All field formations of the Intelligence and Investigation (I&I) Directorate have been instructed to come out of hibernation and freely combat the menace of tax evasion, tax fraud, money laundering and terror financing,” FBR Director General I&I Dr Bashirullah Khan said.

He said the enforcement of systematic raids on the non compliant persons and tax evaders will be intensified across the board.

So far tax evaders have been detected in Karachi, Faisalabad, Lahore and Multan.

Drive stepped up

Meanwhile, an official statement issued here said that Directorate of Intelligence has been asked to step up drive against unregistered persons who are making taxable supplies but have not registered for Sales Tax.

In this connection, the Directorate of Multan constituted a team to raid the premises of an unregistered person manufacturing plastic pipes and water tanks. The person is involved in massive evasion of Sales Tax as the unit was making taxable supplies without getting registration — a move that comes under Sales Tax fraud.

Despite the fact that the unit had utility bills running into millions of rupees, it remained unregistered.

The team confiscated substantial records including sales/purchase ledgers, banking related record and bill books. An investigation into the case has been initiated.

FBR’s I&I Directorate in Karachi also detected a scandal involving a racket of unregistered textile units without payment of taxes. The textile units are manufacturing grey cloths and embroidery but do not exist on the tax roll of the country.

A tax team raided four textile units which are operating in industrial area without sales tax registration. These units are not only evading due taxes but also facilitating other renowned textile units in their sales suppression.

As per details, one large unregistered textile unit was identified with 63 looms and other machinery manufacturing grey cloth.

Of the three other textile units, two units are involved in manufacturing of grey cloth while one was making embroidered cloth.

Published in Dawn, January 16th, 2020