Rs100 billion worth of tax fraud discovered by FBR

[Morpheus]

Rs100 billion worth of tax fraud discovered by FBR
By
Monitoring Report
-
November 14, 2019
3
10136

KARACHI: The country’s corporate sector has been found involved in at least Rs100 billion of tax evasion and avoidance during the last four months, reported The News.

Large Taxpayers Unit (LTU) Karachi, the biggest revenue collecting arm of the Federal Board of Revenue (FBR), unearthed Rs100 billion worth of tax fraud in July to October period of the current fiscal year, the officials told a news conference.

In the ongoing audit and examination, the unit detected Rs100 billion as tax avoidance/evasion by around 12 companies, senior officials of LTU Karachi quoted in the publication said. They however did not reveal names of tax evading companies.

Inland Revenue commissioners Zulfiqar Memon and Girdhari Mal were sharing information about the performance of the unit as part of instructions of the FBR Chairman Shabbar Zaidi.


According to the report, Mal said alone one case involved the tax concealment of Rs23 billion. Notices have been issued to the companies for recovery of evaded amount, he said.

The LTU Karachi released Rs21 billion as sales tax refund during the period under review after the change of sales tax regime effective from July 1, 2019.

Memon said the law of information sharing from banks to tax authorities was introduced in 2013. However, the law has been stayed by the courts. The FBR is unable to receive information with exception of specific/identified cases from banks, he added.


https://profit.pakistantoday.com.pk/2019/11/14/rs100-billion-worth-of-tax-fraud-discovered-by-fbr/

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Looks like FBR finally woke up after many years in slumber

 

[The Accountant]

Rs100 billion worth of tax fraud discovered by FBR
By
Monitoring Report
-
November 14, 2019
3
10136

KARACHI: The country’s corporate sector has been found involved in at least Rs100 billion of tax evasion and avoidance during the last four months, reported The News.

Large Taxpayers Unit (LTU) Karachi, the biggest revenue collecting arm of the Federal Board of Revenue (FBR), unearthed Rs100 billion worth of tax fraud in July to October period of the current fiscal year, the officials told a news conference.

In the ongoing audit and examination, the unit detected Rs100 billion as tax avoidance/evasion by around 12 companies, senior officials of LTU Karachi quoted in the publication said. They however did not reveal names of tax evading companies.

Inland Revenue commissioners Zulfiqar Memon and Girdhari Mal were sharing information about the performance of the unit as part of instructions of the FBR Chairman Shabbar Zaidi.


According to the report, Mal said alone one case involved the tax concealment of Rs23 billion. Notices have been issued to the companies for recovery of evaded amount, he said.

The LTU Karachi released Rs21 billion as sales tax refund during the period under review after the change of sales tax regime effective from July 1, 2019.

Memon said the law of information sharing from banks to tax authorities was introduced in 2013. However, the law has been stayed by the courts. The FBR is unable to receive information with exception of specific/identified cases from banks, he added.


https://profit.pakistantoday.com.pk/2019/11/14/rs100-billion-worth-of-tax-fraud-discovered-by-fbr/

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Looks like FBR finally woke up after many years in slumber

Lolz, probably the same old FBR. I am witness to this specific event which happened to me and my organization. We had tax audit pending for 3 years and we were demanded a hefty bribery for each year audit closure. On denial to pay the bribery we were slammed with tax liability of of around Rs. 450 million. Since last 2 years we are fighting those allegations at various courts.

For understanding of you guys, out of many issues identified by FBR, one was they treated all the credits in our bank statements as our income. It means any bank loans, any check return, even any error correction by bank was treated as my income. By this intentional faulty calculation they added income of Rs. 500 million in just one account head of a single year.

 

[Nefarious]

100% they knew about it all along, just got kick up the *** to do their job

 

[The Accountant]

LTU units are the most compliant tax payers of the country. they are paying the biggest chunk

 

[FalconStar]

LTU units are the most compliant tax payers of the country. they are paying the biggest chunk

So they've the right for TAX evasion.
And it seems as if you know all the people who run these companies.

Everywhere no matter how good the company is, they try to evade taxes, but it's the job of the Government to catch them. Just as Ireland caught Google and then imposed an hefty fine on them.

 

[The Accountant]

So they've the right for TAX evasion.
And it seems as if you know all the people who run these companies.

Everywhere no matter how good the company is, they try to evade taxes, but it's the job of the Government to catch them. Just as Ireland caught Google and then imposed an hefty fine on them.

Do you understand the meaning of word compliance? Let me explain, compliance means working as per law.

I hope you happen to have an interaction with FBR so that you get to know that there working style is just like Pakistani police, i.e. guilty unless you can prove yourself innocent.

All the tax practitioners knows that most of the LTU companies are paying full tax it is the sectors which are out of LTU such as retail sector, real state, smuggled goods, textile (some companies), sugar (most of the companies), trading business and service sectors such as doctors, lawyers and all cash related business.

For FBR it is difficult task to track down those persons who are not even fillers but making millions so rather than the right way they make false allegations of evasions and make big liabilities. Ultimately Corporate sector (most of the time) won these cases in tribunals and courts. There is no addition to revenue however, time and efforts of tax compliant people get wasted.

 

[shah_123]

Lolz, probably the same old FBR. I am witness to this specific event which happened to me and my organization. We had tax audit pending for 3 years and we were demanded a hefty bribery for each year audit closure. On denial to pay the bribery we were slammed with tax liability of of around Rs. 450 million. Since last 2 years we are fighting those allegations at various courts.

For understanding of you guys, out of many issues identified by FBR, one was they treated all the credits in our bank statements as our income. It means any bank loans, any check return, even any error correction by bank was treated as my income. By this intentional faulty calculation they added income of Rs. 500 million in just one account head of a single year.

They are haram khors, what else do you expect from them --- (in kay ragon meyn haram dorta hai)

 

[Baz]

Jitney marzi chariman change kardo. jab tak intelligent, clean, young, non noori people are not inducted in FBR there is no hope. these maderchods need to be hanged to say the least

 

[FalconStar]

Do you understand the meaning of word compliance? Let me explain, compliance means working as per law.

I hope you happen to have an interaction with FBR so that you get to know that there working style is just like Pakistani police, i.e. guilty unless you can prove yourself innocent.

All the tax practitioners knows that most of the LTU companies are paying full tax it is the sectors which are out of LTU such as retail sector, real state, smuggled goods, textile (some companies), sugar (most of the companies), trading business and service sectors such as doctors, lawyers and all cash related business.

For FBR it is difficult task to track down those persons who are not even fillers but making millions so rather than the right way they make false allegations of evasions and make big liabilities. Ultimately Corporate sector (most of the time) won these cases in tribunals and courts. There is no addition to revenue however, time and efforts of tax compliant people get wasted.

Oh, maybe I can't comprehend the meaning of the word "COMPLIANCE". Or maybe I don't want to.
But the sole job of a company is to make profit, as much as they can and they'll try to find every single loophole to dodge taxes. And in a State like Pakistan where the enforcement of the Law is kind of an alien concept. Where no one really cares what the law says. People or companies will do everything in their power to save money and increase their profits be it legal or not.

So yeah I don't believe that every single company is complying with the appropriate tax law, because if they were we wouldn't be in a state where when the Government tries to enforce tax laws people start going on strikes and dharnas.

 

[crankthatskunk]

Do you understand the meaning of word compliance? Let me explain, compliance means working as per law.

I hope you happen to have an interaction with FBR so that you get to know that there working style is just like Pakistani police, i.e. guilty unless you can prove yourself innocent.

All the tax practitioners knows that most of the LTU companies are paying full tax it is the sectors which are out of LTU such as retail sector, real state, smuggled goods, textile (some companies), sugar (most of the companies), trading business and service sectors such as doctors, lawyers and all cash related business.

For FBR it is difficult task to track down those persons who are not even fillers but making millions so rather than the right way they make false allegations of evasions and make big liabilities. Ultimately Corporate sector (most of the time) won these cases in tribunals and courts. There is no addition to revenue however, time and efforts of tax compliant people get wasted.

The section of the economy you have identified are out of the tax loop because there had been no efforts to document the economy of Pakistan.

These people had practice it for decades, traders,professional services providers, have never completed and submitted their tax returns. Unless that part of the economy is documented and these people are brought in to tax net, Pakistan would continue to struggle.

Imran Khan knows what to do, he is trying to change things ever so slowly. The reason is very clear they have formed a mafia in Pakistan. They try to blackmail the state. The crooked Butt brothers and Zardaris have purposefully allowed this theft to go on for 40 years, because we all know they are all part of the bigger mafia.

 

[Indus Pakistan]

And it seems as if you know all the people who run these companies.

lol. And we all now all taxpayers are compliant. That is why Pakistan is notorious for having one of the lowest tax to GDP %. Mmm something does not add up in that statememt.

 

[The Accountant]

Oh, maybe I can't comprehend the meaning of the word "COMPLIANCE". Or maybe I don't want to.
But the sole job of a company is to make profit, as much as they can and they'll try to find every single loophole to dodge taxes. And in a State like Pakistan where the enforcement of the Law is kind of an alien concept. Where no one really cares what the law says. People or companies will do everything in their power to save money and increase their profits be it legal or not.

So yeah I don't believe that every single company is complying with the appropriate tax law, because if they were we wouldn't be in a state where when the Government tries to enforce tax laws people start going on strikes and dharnas.

Ok tell me do you have any data to support your assumptions / claims?
do you have any experience of handling FBR and a realted case of LTU?
Do you have an idea the structure of tax departments of companies as huge as those 12 companies were able to do a tax fraud of 100 billion. It means these 12 companies under-reported profits by Rs. 300 billion which is on average of Rs. 25 billion each?
How many such companies exit that could have profit of Rs. 25 billion? Probably some major banks, oil & gas giants (mostly government), and some huge multinationals. Do you even slightest of idea the competent and honest staff these type of companies hire to keep themselves transparent and the check and balance they have from SECP, PSX, SBP and other various regulators?

You have no idea man what are you talking about. I am from the field so I know what exactly happens in LTU. Kindly have a read on second post of this thread.

 

[FalconStar]

Do you even slightest of idea the competent and honest staff these type of companies hire to keep themselves transparent and the check and balance they have from SECP, PSX, SBP and other various regulators?

Yeah this is the reason. We have such honest people among us who are always ready to be the best law abiding citizens and yeah, the great SECP and all those weird Acronym agencies in Pakistan are overflowing with the honesty of it's employees.

Maybe that's the reason Supreme Court said SECP is a useless compromised and full of self serving people agency.
And yeah what do I know you're the all knowing.

Ok tell me do you have any data to support your assumptions / claims?

Yeah the Data just provided by the FBR, in which they say they evaded taxes. So should I believe you or maybe them.

And in my opinion FBR is as useless as the other worthless Organisations. But as you trust them and their honest and hard working employees, you should also learn to trust the poor FBR. After all they are the same people. One day in FBR next in FIA and then in SECP. That's your Civil Service.

 

[The Accountant]

Yeah this is the reason. We have such honest people among us who are always ready to be the best law abiding citizens and yeah, the great SECP and all those weird Acronym agencies in Pakistan are overflowing with the honesty of it's employees.

Maybe that's the reason Supreme Court said SECP is a useless compromised and full of self serving people agency.
And yeah what do I know you're the all knowing.

Yeah the Data just provided by the FBR, in which they say they evaded taxes. So should I believe you or maybe them.

And in my opinion FBR is as useless as the other worthless Organisations. But as you trust them and their honest and hard working employees, you should also learn to trust the poor FBR. After all they are the same people. One day in FBR next in FIA and then in SECP. That's your Civil Service.

Whatever you keep believing