Directorate General of Intelligence and Investigation Inland Revenue's (IR) enforcement and recovery drive in major sectors/industries, including paper & paper board sector, is assisting the Federal Board of Revenue (FBR) in achieving the assigned revenue collection during the outgoing fiscal year 2016-17. Sources told Business Recorder here on Tuesday that the FBR's efforts to achieve the highest ever revenue target in the history of Pakistan are at its peak and the Directorate General of I&I-IR, Islamabad is handsomely contributing in it.

In addition to other activities, the major contribution was enforcement of record recovery of evaded amount ie Rs 6.2 billion by Directorate of I&I-IR Karachi during May 2017. The Lahore Directorate enhances the pace of its campaign against tax evaders of paper & paper board sector. In this context investigation reports against a paper & board mills located in Gujranwala, involved in income tax evasion, were finalised. Earlier, reports for tax years 2011 & 2012 were finalised with a detection of Rs 141.38 million. Currently, investigation reports for tax year 2013 and 2014 were also finalised and sent to RTO Gujranwala for adjudication and consequent recovery.

According to report, it was found that the subject taxpayer is involved in use of concealed/undeclared bank accounts of its director and major share holder Muhammad Ayub, to park it's out of book sales as well as payment against major supplier of company and evading its income like previous years of 2011 & 2012.

Muhammad Ayub, registered in income tax as salaried person, declared its total income at Rs 0.36 million for tax year 2013 and had not filed return for tax year 2014, whereas amount credited in his bank accounts was Rs 118.90 million in tax year 2013 and Rs 103.05 million in tax year 2014. Scrutiny of bank credit entries revealed that eighty parties, related to business of the Paper Mill, deposited money of more than Rs 90 million during each of tax years 2013 & 2014 in these undeclared/ concealed bank accounts. Moreover, payments of huge amounts were made through these accounts to major suppliers of the Paper Mill.

On the basis of above facts, it was concluded that Paper and Board Mill located in Gujranwala has concealed the sales of Rs 118.90 million in tax year 2013 and Rs 103.05 million for the tax year 2014. Expected loss of revenue for tax year 2013 is Rs 65.39 million including Rs 32.69 million of penalty and for tax year 2014 is Rs 66.69 million including Rs 33.345 million of penalty.

Accordingly, investigation reports have been sent to chief commissioner-IR, RTO Gujranwala for adjudication and consequent recovery. Director General Khawaja Tanveer Ahmed has admired the efforts of his team and advised to stay focused for achievement of target.

Copyright Business Recorder, 2017