KARACHI: Federal Investigation Agency (FIA) has arrested a business man and his son following allegations of involvement in a massive tax fraud amounting Rs 5 billion.
FBR has confirmed that the company is suspected of using fake sales invoices to evade taxes worth billions.
An investigation by the Federal Board of Revenue has revealed that the company, associated with individuals named Nawab Khan and Aftab, is linked to the fraudulent activity.
The fraudulent scheme primarily targeted the steel sector in Karachi, as disclosed by the FBR.
According to the statements from the FBR indicated that both the father and son were arrested in Karachi, with a case officially registered against them.
Over the course of three months, the FBR conducted an extensive probe into the company’s records.
In the investigation, it was discovered that Nawab Khan was directly involved in issuing fake receipts and deceived buyers with fake invoices to generate false tax returns.
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The company under scrutiny made substantial local purchases amounting to Rs 13.88 billion from December 21, 2023, to February 23, 2024, according to FBR findings.
Moreover, the FBR expressed concerns over a disputed claim of Rs 2.36 billion in tax input.