Directorate of I & I, IR Lahore unearths tax evasion of Rs460mn

September 24, 2021: In a drive to curb tax evasion, the Directorate of Intelligence & Investigation, Inland Revenue (I&I-IR), Lahore conducted a raid on the business premises of a steel mill located at Ferozwala, District Sheikhupura, and unearthed estimated tax evasion of Rs400 million.

The steel mill was engaged in the manufacturing of steel bars ingots and billets. During the initial investigation, it was revealed that the steel mill had filed Nil Sales Tax/ FED Returns for one year, however, the electricity meter installed at the premises showed huge consumption of electricity during that period.

On the basis of initial scrutiny of available information and after fulfilling legal formalities, a raid was carried out and relevant documents and records have been impounded. According to the initial estimate, tax evasion of Rs. 400 million is involved in the case. The record is under scrutiny at the Lahore Directorate and further legal action will be taken to recover the evaded taxes and duties. 

In a similar operation, the Directorate of Intelligence & Investigation, IR Multan raided a unit located in the Industrial Estate, Multan under Section 38 and 40 of the Sales Tax Act 1990. The said unit was engaged in the manufacture of Polypropylene bags. After scrutiny of record, it transpired that the said unit was blacklisted by FBR but despite that, the unit was engaged in the manufacturing of product for a long time.

The Sales Tax number was also not got restored by the unit. According to the initial estimate, tax evasion of Rs. 60 million is involved in the case. Further legal action will be taken after the thorough scrutiny of the record under the relevant provisions of law.

In accordance with the instructions of the Directorate General of Intelligence & Investigation IR, Islamabad, such operations across the country shall continue in order to detect the tax fraud and revenue leakages because FBR is committed to implementing its zero-tolerance policy against tax evasion.

Press Release