ISLAMABAD—The Federal Board of Revenue (FBR) continues to tighten the noose against those involved in fake and flying invoices. The latest big fish is Lucky Cement, as one of the company’s suppliers has been involved in this crime.
FBR Intelligence and Investigation Inland Revenue uncovered a case involving a Lucky Cement supplier, who issued fake and flying invoices worth millions of rupees.
In a statement, the FBR Directorate of Intelligence and Investigation, Inland Revenue, lodged a case with the Special Judge (Customs & Taxation) against M/s Al-Abbas Traders for issuing fake invoices to M/s. Lucky Cement.
It has been learnt that the management of the Cement giant agreed to repay the evaded tax amount, depositing Rs.85 million in input tax into the Federal Treasury.
As the media covered the incident, Lucky Cement issued a clarification, saying Al-Abbas Traders handed out fake invoices to ZA Choice, which supplied coal to Lucky Cement.
Thus, Inland Revenue recently started an inquiry into all domestic coal buyers. Lucky Cement Limited also mentioned following all sales tax procedures and only purchasing coal from FBR-registered vendors in the active category. The company gets copies of sales tax returns from suppliers for claimed input tax.
It mentioned that the apex tax collection agency systems failed to detect non-compliant sellers, which led to ‘harassment of compliant taxpayers contributing significantly to national tax and export revenues’.
Furthermore, Lucky Cement is mulling legal action against Intelligence and Investigation officials for recovering undue amounts.
