Massive tax fraud uncovered in lead battery industry

WEB DESK: A tax fraud amounting to Rs33 billion has been uncovered within the lead battery industry, the Hum Investigation Team (HIT) team has learnt.

Evidence compiled by the HIT suggests that multiple lead-battery companies attempted to claim refunds through the submission of fraudulent financial records amounting to Rs60 billion.

Documentation obtained by our investigative team reveals that private battery companies have been avoiding taxes by employing counterfeit and inflated invoices.

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The Federal Board of Revenue’s (FBR) Directorate of Intelligence and Investigation has disclosed that two companies in Karachi and Hyderabad are currently under investigation for the distribution of counterfeit and inflated financial documents valued at Rs33 billion.

As a result, sales tax registrations for over 22 private companies have been suspended. Additionally, the Directorate of Intelligence and Investigation has taken action against six individuals suspected of establishing counterfeit battery lead companies.

These organisations have been implicated in corporate tax fraud and the dissemination of counterfeit invoices throughout different regions of Pakistan. Specifically, 12 companies in Peshawar, 45 in Lahore, 5 in Karachi, and 15 in Gujranwala have been linked to sales tax fraud.

Charges under section 37(2) of the sales tax fraud section have been filed against 118 accused individuals. FBR officials have revealed that “strict measures” are being implemented to counter tax evasion within the battery industry. The initiative involves the deployment of six teams from the Directorate of Intelligence and Investigation.