“The investigation is in progress for determining the quantum of losses to the national kitty,” said the Federal Board of Revenue. -File Photo

ISLAMABAD: The intelligence wing of the Federal Board of Revenue has busted a gang of fraudsters who are believed to have issued fake invoices against bogus companies for claiming millions in refunds or input tax adjustments from the tax department.

He said the accused, in connivance with tax officials, had used names of fictitious companies for claiming refunds.

Mr Rauf said the authorities had been instructed to trace possible links of fraudsters with tax officials across the country.

He said there was a possibility of such crimes at regional tax offices (RTOs) in Karachi, Lahore and Multan.

A statement issued by the FBR said the Directorate General of Intelligence and Investigation, Islamabad, had rounded up four persons on charges of involvement in obtaining sales tax registration certificates along with sales tax registration files of various closed and nil-filer/non-filer units in connivance with unscrupulous sales tax staff at Karachi.

The arrested people were identified as Faisal Elahi s/o Anees Elahi, Shaikh Zahid Sehgal alias Billo s/o Muhammad Aslam Sehgal, Karim s/o Jameel Ahmed and Asghar Ali alias Javed s/o Ghulam Rasul.

The statement said a large number of sales tax registration certificates, blank letterheads, computerised national identity cards and rent certificates were recovered from them.

The preliminary investigation had revealed that it was a huge racket that involved using closed/inactive units for issuance of fake sales tax invoices for illegally obtaining inadmissible input adjustments and refunds, it said.

The FBR spokesman said the intelligence officials were posted in plainclothes in all tax offices to keep an eye on the possibility of issuance of fake/flying invoices.

The FBR had also deployed its own officials in plainclothes around all major regional tax offices in the country, the statement said.

FBR Chairman Salman Siddiq has directed the chief commissioner, RTO, Karachi, to cooperate with the intelligence staff in catching the culprits and recovering the looted revenue.

He vowed to root out menace of fake sales tax invoices, which is a major hurdle to expeditious refunds to taxpayers.