According to news reports, Federal Board of Revenue (FBR) has arrested the Managing Partner of one of the multinational company’s garments manufacturer, Faraz Salehjee of Chester Bernard, over the accusation of committing tax fraud since 2012.
According to official sources of Business Recorder, the active investigation was taken upon by Intelligence, Investigation & Prosecution Cell, Zone – I of Regional Tax Office (RTO)-III on a tip-off, after which it revealed that the proprietor of the manufacturing unit, along with other associates were involved in the fraud through retail as well as online selling of garments without the due payment of sales tax.
To prove the accusations valid and true, the department conducted the investigation which revealed that Faraz Salehjee had been registered a sales tax unit and was also enrolled as an exporter with no declared manufacturing unit in the FBR database.
It was further stated that the accused had four illegal and undeclared retail outlets in Karachi, Lahore, Islamabad and Faisalabad. He was also running an online store actively and the inquiry added that the garment company had filed ‘Nil’ monthly sales tax returns from July 2012 to January 2016 in e-portal and from February 2016 onwards, the accused person was a non-filer.
Moreover, the investigation department confirmed that the bank statements and information had assisted them into establishing the facts regarding the ‘Nil’ filing of sales tax returns, in order to evade sales tax liability. This directly came under the sphere of tax fraud and added that the Faraz, who is now on seven-day remand, along with his acclaimed associates, provided a financial shock of Rs 6.11 million to the national stockmarket.