FIA arrests company owner, son in Rs 5 bln Tax fraud

KARACHI: Federal investigation Agency (FIA) on Tuesday arrested a private company owner and his son following allegations of involvement in a massive tax fraud amounting Rs 5 billion, ARY News reported.

The Federal Board of Revenue (FBR) has confirmed that the company is suspected of using fake sales invoices to evade taxes worth billions.

An investigation by the FBR has revealed that the company, associated with individuals named Nawab Khan and Aftab, is linked to the fraudulent activity.

READ: FIA seeks details of cases registered against govt officials

The fraudulent scheme primarily targeted the steel sector in Karachi, as disclosed by the FBR. Statements from the FBR indicated that both the father and son were arrested in Karachi, with a case officially registered against them.

Over the course of three months, the FBR conducted an extensive probe into the company’s records. During the investigation, it was discovered that Nawab Khan was directly involved in issuing fake receipts and deceived buyers with fake invoices to generate false tax returns.

The company under scrutiny made substantial local purchases amounting to Rs 13.88 billion from December 21, 2023, to February 23, 2024, according to FBR findings. Moreover, the FBR expressed concerns over a disputed claim of Rs 2.36 billion in tax input.