A comparison of two CNICs revealed that same picture of individual could be seen on both the CNICs having different names, father name and date of birth. The permanent addresses on both the CNICs are the same. However, Nadra record verified that both the ID cards are of the same person. This is a unique case as one individual is using two CNICs to commit tax evasion.
The question arises why a person is maintaining two different CNICs? He is a non-filer and his companies are in huge loss. He is making negligible tax payments. If one CNIC is used for banking transactions, the same bank account could easily be hidden from tax department. The second CNIC could be presented to the tax department showing actual business transactions with the bank account being operated under the first CNIC.
When contacted, sources in the Regional Tax Office Abbottabad confirmed that the RTO is investigating a detailed report of the Directorate of Intelligence and Investigation Inland Revenue (IR). The agency's report has been received by the RTO and further investigation is under way. According to sources, during routine exercise of "Fiscal Intelligence" directorate of intelligence IR came across a case which involves massive tax evasion, gross misstatement of facts, deliberate suppression of purchase value of assets, and above all duplicate personal identity. The subject individual holds two different CNICs with entirely different identifiable particulars. Nadra's record confirms the fact. This single individual is simultaneously holding two CNICs, ie, CINC 37405-6381716-1 and the other CNIC 61101-1925985-1.
Tax profile of the individual revealed that he is one of the directors of a steel re-rolling mill in Hattar, Abbottabad. The unit is being assessed by RTO Abbottabad. The income tax returns available reflect that it is a loss declaring unit. Tax profile of the individual in question also reflects that apart from Steel Re-Rolling Mills Hattar, he is proprietor of another steel unit in Hattar as well. It is an AOP being run by the said individual. He himself is though on the Tax Roll, but as per FBR's portal he is a non-filer.
On August 24, 2007 the said individual, in open bid, offered the price of Rs 110 million to a bank for purchase of assets which was accepted and 0n August 27, 2007 acceptance of his offer was communicated along with terms of payments. On January 28, 2008 the said property was registered at Rs 10.200 million meaning thereby, an amount Rs 99.800 million has been suppressed/concealed for transfer/tax purposes.
Sources said that later on during 2008 the said property was dismantled, stores/scrap/materials and land have been separately disposed of pocketing profit of Rs 125 million. Purchase and sale of the said asset has not been declared anywhere in tax record because he himself is a non-filer and company's balance sheet is completely silent about both acquisition as well as disposal.
The aforesaid picture clearly reflects the following dimensions: Firstly, irreconcilable duplicate personal identity needs thorough probe because it can be misused for defrauding Tax department. Secondly, purchase of an industrial unit by a non-filer itself speaks volumes about the nature and magnitude of tax evasion.
Thirdly, while declared business is suffering from loss, the wealth of sponsor director is multiplying without any incidence of tax. Fourthly, through gross suppression of purchase price all federal/provincial/local transfer taxes (including CVT) are being evaded. Fifthly, the profit earned on a business asset has not been offered for taxation. As the untaxed profits of steel business are being used for investment therefore the cases of a Steel Re-Rolling Mill and a steel unit may be earmarked for composite/investigative audit. Profit earned on sale of a commercial asset may be taxed in the relevant Tax Year, sources in RTO Abbottabad added.