The Directorate of Intelligence and Investigation of Inland Revenue, Faisalabad has unearthed a big scam of issuing/adjusting fake and flying invoices involving tax fraud involving over Rs 134 million and an FIR has been registered against M/s Arrow International, and 65 companies which were buyers, suppliers and other beneficiaries of M/s Arrow International.
According the documents and the FIR available with the DNA, the case has been registered under section 37A read with section 2(37) of the Sales Tax Act, 1990 against M/s Arrow International, its buyers, suppliers and other beneficiaries involved in defrauding national exchequer from tax revenue of over Rs 134 million.
According to the documents, investigations in the said case revealed that M/s Arrow International is a non-existent and a dummy unit, which was registered for the purpose of issuance of fake and flying invoices to facilitate buyers and suppliers avoid payment of due sales tax including further tax by the companies involved in import/export, weaving, spinning, manufacturing of textile products.
According to further details the sales tax profile of the registered person of M/s Arrow International revealed huge “Bogus” supplies of worth over Rs 1.4 billion during the February 2017 to October 2017, but the firm did not pay a single penny in the national exchequer during this period. “M/s Arrow Arrow International also declared “Fictitious” purchases amounting to over Rs 1.3 billion from 65 different textile units in order to facilitate them to avoid the payment of the due tax.”
