Steelmaker premises raided in Lahore over tax evasion

ISLAMABAD: Authorities have unearthed tax evasion to the tune of Rs400 million after conducting a raid on the business premises of a steelmaker in Lahore, the Federal Board of Revenue (FBR) said on Thursday.

The FBR’s 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.

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 (federal excise duty) returns for one year, however, electricity meter installed at the premises showed huge consumption of electricity during that period,” the FBR said in a statement.

“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 Rs400 million is involved in the case.

The statement said the record is under scrutiny at the Lahore directorate of the FBR and “further legal action will be taken to recover the evaded taxes and duties”.

In a similar operation, directorate of Intelligence & Investigation, IR Multan raided on a unit located in the industrial estate, Multan under Section 38 and 40 of 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 statement said. “The sales tax number was also not got restored by the unit.”

Tax evasion of Rs60 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.

The statement said such operations across the country will continue in order to detect the tax fraud and revenue leakages because FBR is committed to implement its zero tolerance policy against tax evasion.