Tax fraud of Rs110 million by Textile tycoon

Islamabad: A presumed textile magnate is arrested as he is accused to be involved in a tax fraud of Rs110 million.

The Karachi-based textile mill owner was arrested on Friday last week following a major breakthrough achieved by the intelligence arm of the Federal Board of Revenue (FBR) that uncovered a racket pertaining to bogus transactions to evade sales tax.

The tycoon was released on bail on Tuesday by the Special Judge of Customs and Taxation after he agreed to deposit a pay order of Rs27.8 million, which is 25% of the embezzled amount, and also gave post-dated cheques for the remaining amount of Rs82.5 million, confirmed an official of the FBR’s Intelligence and Investigation wing.

The name of the tycoon, who exports 70% of his manufactured products, and his company, has been withheld due to possible adverse impact of the disclosure on the limited company, which is listed on the stock market.
A supplier, registered with the Regional Tax Office Karachi, was facilitating the big tycoons. He was arrested by the tax authorities, who gave evidence against the textile tycoon.

On information provided by the arrested supplier, the tax authorities arrested two more accused from Lahore. They deposited Rs3.2 million and gave post-dated cheques for Rs10 million to get bail from the Special Judge Customs and Taxation.
These arrests eventually led to the arrest of the textile tycoon from Cochinwala Market, Tower Karachi.