ISLAMABAD: The newly-created intelligence wing of Federal Board of Revenue has unearthed a case of massive income tax evasion in Faisalabad, it is learnt.

As per details, the case involved benami bank transactions; huge taxable income is being channelled in the hands of a low-paid employee through a local bank, who was not an existing taxpayer to conceal the income from the tax officers.

According to preliminary investigating findings of the Inland Revenue Services (IRS) intelligence wing available with Dawn showed that an amount of Rs339.966 million was deposited in the account of the low-grade employee in Faisalabad. “The statement of the account holder show huge credit and debit entries,” said a senior official in the Federal Board of Revenue.

The account was opened on the name of Mr Ghulam, who is a store keeper at the godown. The official said it was too early to disclose the name of the actual owner of the account. “We are investigating the owners, who used the low-paid employee for holding the money in his account for them,” the officer said.

Interestingly, the account holder also nominates another person instead of his own sons, daughters and spouse. “This is the basic question which proves the factum of benami,” the official asserted.

At the same time, the official said that there were two other accounts opened in the same branch. There are inter-bank transactions in all the three accounts, which prove financial connections as well, the official added.

The official said that investigation officer was probing the profile of the identified persons to unearth actual incomes, which were concealed to evade income tax.

The FBR has also ordered investigating wing of IRS to conduct desk audit of such account holders, where massive transactions took place but those people were not actually taxpayers.

In Pakistan the tax-to-GDP ratio is less than nine per cent because rich people are not paying taxes according to their potential.

As a result, the government has failed to arrest the widening budget deficit, which this year is expected to reach 7 per cent.And IMF has already suspended its programme for Pakistan along with withheld amount by US which Pakistan spent from his own resources in fight against terrorism.