Federal Board of Revenue Inland Revenue (IR) Intelligence and Investigation Directorate Karachi has unearthed a fake sales tax invoices scam worth Rs 314 billion, reported the 24NewsHD TV channel.
According to sources, over 200 companies have been found involved in the scam which is being termed the biggest fake sales tax invoice scandal in Pakistan’s history.
Lahore, Pakistan's second-largest city, has emerged as a focal point in this vast network of fake sales tax invoices, with a majority of companies involved found in this metropolis.
Among the involved 200 companies, six companies registered in Karachi and 69 companies in Lahore are from the corporate tax office.
Likewise, seven companies registered in Islamabad, 10 in Karachi, and 43 in Lahore belong to the large tax unit.
The sources said that eight companies of RTO Karachi-I and 39 companies of RTO Karachi-II are involved in tax fraud.
As many as 20 companies from Peshawar, 10 from Abbottabad, 15 from Gujranwala, three from Sialkot, and three from Islamabad have been involved in malpractices.
The investigation into this big scam extended across various tax offices throughout the country.
A key player in the scam is a fictitious company named "KH & Sons," which has been linked to a tax fraud of a colossal 314 billion rupees.
The officials have issued notices to the companies involved in this fraudulent sales tax invoice scheme, commencing a process to bring the perpetrators to justice.
Shockingly, some companies allegedly involved in tax fraud even contacted the Federal Board of Revenue (FBR) to claim refunds.
Two companies include KH & Sons and Mohsin Traders have been blacklisted under the Sales Tax Act as the investigation unfolds.
The alleged mastermind of this fraudulent operation, Owais Ismail, remains at large, evading authorities as they intensify efforts to apprehend him.
In a recent development, authorities raided an office located in Karachi's Gulshan Iqbal neighborhood in pursuit of Owais Ismail, but he eluded capture.
The address of Owais Ismail's identity card was also found to be fake.
Reporter: Ashraf Khan