Under his leadership, the Directorate General of Intelligence & Investigations has changed the gear and sped up its campaign against illegal cigarettes stockist and manufacturers across the country. During the month of April 2017, a series of raids were conducted against culprits of this sector and millions of cigarettes sticks were seized. Authorised teams of different directorates across the country are in action. The Directorate of Intelligence & Investigation-IR, Multan conducted a raid at the premises/godowns of cigarette stockists located at Lutaf Abad, Bason Road, Multan. The team recovered 50,000 non-duty paid cigarettes of a local brand. In another exercise, Multan Directorate has confiscated 1,850,000 sticks from different culprit. However, during raids at godowns located at Shah Rukan-e-Alam Colony & at Southern Bypass Road, Multan, they confiscated 260,000 sticks of non-duty paid cigarettes. The Directorate of I&I-IR Hyderabad contributed in campaign by conducting raids at godowns located at Khipro, district Sanghar, and seized 250,000 sticks of non-duty paid cigarettes. However, they seized 2,180,000 sticks of non-duty paid cigarettes during raids at godowns located in Umer Kot. It is pertinent to mention that, in all of above cases, neither invoice showing payment of FED & sales tax nor any evidence of the productions/supply of the cigarettes was provided to the teams at the time of visit/seizure. All these cases are under investigations and the Directorate General is in process of tracing out the exact location of origin of this trade. Moreover, the Directorate General of Intelligence & Investigations-IR is actively contributing the ongoing campaign of meeting the current year's collection target of FBR.
Director General Khawaja Tanveer Ahmed has directed all the Directorates of Intelligence & Investigation-IR across the country to speed up their efforts in detection of tax evasion, unplugging the loopholes and enhancing the revenue collection. In this context, Multan Directorate has reported a considerable case of detection and deposit of almost Rs 100 million. On the basis of investigative audit u/s 38 read with section 25(2) of the Sales Tax Act, 1990, the Directorate of I&I-IR, Multan, observed that a known manufacturer of tea located in Bahawalpur is involved in tax evasion. It was found that the taxpayer is engaged in manufacturing of "tea" which is taxable under the 3rd Schedule of the Sales Tax Act, 1990. On the basis of scrutiny of available record/information, the taxpayer has made tax evasion through four different techniques. Firstly, they short paid sales by an amount of Rs 2,893,427. Secondly, there was non-payment of sales tax amounting to Rs 2,585,537 on disposal of fixed assets. Thirdly, by claiming inadmissible sales tax amounting to Rs 17,098,432 deducted by withholding agents and fourthly, by illegal input tax adjustment of Rs 49,207,964. After calculating penalty and default surcharge, the total tax liability reached Rs 100,513,468. These discrepancies were confronted to the tax payer and they admitted to pay the evaded amount of sales tax along with penalty and default surcharge to avoid the criminal proceedings.
Accordingly, the taxpayer has deposited the tax liability of Rs 100,513,468 through six different sales tax payment challans. Khawaja Tanveer Ahmed appreciated the efforts of Multan Directorate.
Copyright Business Recorder, 2017