The Inland Revenue Intelligence and Investigation Directorate of the Federal Board of Revenue (FBR) in Karachi has successfully dismantled an inter-province gang involved in issuing fake/flying sales tax invoices.
As a result, four individuals have been arrested for their involvement in the scam, which caused an estimated revenue loss of Rs. 11.6 billion to the national exchequer.
The first accused was apprehended in Faisalabad, where he was filing fraudulent sales tax returns for various fictitious companies from his residence. The second accused, who was part of the scheme, was arrested at the PRAL Call Centre in Islamabad. He worked as a facilitation officer at PRAL and was found to be providing user IDs and passwords for inactive sales tax registered units to agents involved in creating fake invoices.
During the investigation of the PRAL official, officers discovered Rs. 1,600 million worth of fake output tax data on his computer, which he intended to transmit through FBR’s e-filing system (IRIS).
Following the PRAL official’s disclosure, another agent connected to the scheme was arrested near Islamabad. The fourth accused, who was apprehended in Faisalabad, was an ex-employee of PRAL but had been dismissed from service in 2014. He later became an advocate and is currently a member of the District Bar in Faisalabad.
After the investigation and completion of physical remand in the custody of the Inland Revenue Intelligence and Investigation Directorate, all four accused are now under judicial custody at Central Prison, Karachi. This operation represents a significant achievement for the Directorate, marking the first time that an entire gang involved in such activities has been dismantled.