The Federal Board of Revenue’s Regional Tax Office (RTO) in Hyderabad has initiated legal proceedings against not only the owners of companies but also their chief financial officers and directors involved in fraudulent activities. These individuals are accused of utilizing fake invoices and false documentation to manipulate input adjustments for sales tax returns.
Awareness Seminar Highlights
At an awareness seminar led by Chief Commissioner Inland Revenue Dr. Khalid Malik, key figures including Commissioner Naib Ali, Additional Commissioner Sajid Arain, and Deputy Commissioner Akhtar Hussain discussed these fraudulent practices. The seminar included a presentation outlining how company owners exploit voter ID cards and the Benazir Income Support Programme (BISP) to establish bogus companies and employ low-wage workers, enabling them to conceal sales taxes.
Accountability Measures
Commissioner Agha Naib Ali emphasized that CFOs, financial advisors, and directors often play a role in facilitating these fraudulent input adjustments. He warned that as fraud detection becomes more rigorous in the FBR’s assessment processes, both owners and their financial teams will be held accountable under the law. This crackdown aims to restore integrity to the tax system and ensure compliance among all stakeholders.
