The Chief Financial Officers (CFOs) of companies implicated in sales tax fraud in Pakistan are reportedly evading authorities amid fears of imminent arrest by the Federal Board of Revenue (FBR), Business Recorder reported.
This marks the first time action has been taken against high-ranking executives involved in such fraudulent activities.
Recently, a prominent textile exporter from Faisalabad deposited a significant sum related to evaded sales tax, including penalties. Sources indicate that other CFOs are concerned they may be next following the arrest of their colleagues involved in similar fraud schemes.
Many of these CFOs have either fled or are in hiding to escape potential raids by the FBR’s enforcement agency, which is intensifying efforts against fraudulent operations nationwide. There is a growing apprehension among these executives that political support for the FBR’s crackdown could lead to their arrest and legal prosecution.
The FBR’s Regional Directorates of Intelligence and Investigations Inland Revenue have recently apprehended five individuals, including a key figure responsible for establishing a network of fake businesses and four high-ranking officials linked to the fraud, which has reportedly cost the national treasury billions in lost sales tax revenue.
This nationwide operation against organized crime in sales tax fraud represents a significant escalation in the FBR’s enforcement measures aimed at improving tax compliance. The FBR is urging CFOs to settle outstanding tax debts, including principal amounts and penalties, to avoid facing prosecution.
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Govt urges non-filers, CFOs of wealthy manufacturers to address tax obligations
Govt urges non-filers, CFOs of wealthy manufacturers to address tax obligations
