ISLAMABAD: Chief Financial Officers (CFOs) of companies allegedly involved in sales tax fraud have apparently gone into hiding fearing possible arrest by the relevant intelligence agency of the Federal Board of Revenue (FBR).
According to a report by Business Recorder, this is the first time in the history of Pakistan that action is being taken against CFOs of large companies involved in sales tax fraud.
In only one case has a large amount of evaded sales tax (principal amount and penalty) been deposited by a leading textile exporter in Faisalabad.
Sources told Business Recorder that the CFOs of the fraudulent companies have expressed fear that their turn will come after the arrest of the CFOs of the companies involved in tax fraud.
Most of the CFOs allegedly involved in sales tax fraud have absconded or are in hiding to avoid FBR agency raids or enforcement actions. This is also hampering the agency’s ongoing exercise against fake units across the country.
CFOs holding top positions in companies know very well that the political backing behind this enforcement exercise against tax evaders will eventually result in their arrest and prosecution in the courts.
The Regional Directorate of Intelligence and Investigation of Inland Revenue arrested five accused across the country, including a leading fraudster who was involved in creating dummy businesses and was responsible for tax fraud worth billions.
The loss of revenue due to fraudulent practices involved in gangs of fraudsters runs into crores to the national exchequer.
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