ByIslamabad, Pakistan: The Directorate General of Intelligence and Investigation-Inland Revenue (IR) has prevented a revenue loss of over Rs 16 billion by dismantling several gangs involved in tax fraud using foreign IP addresses, VPNs, and proxy servers to falsify tax credits.
These groups masked their identities using “VPN/USA based” servers in Dallas, Texas, and New Jersey, to bypass local detection systems. Business Recorder
The fraudsters exploited the Federal Board of Revenue’s (FBR) IRIS return filing system, particularly by declaring fake carry-forward input taxes. A major instance involved Waqar Enterprises, an importer and distributor, which falsely claimed over Rs 3 billion in tax credits through amended sales tax returns in an attempt to sidestep new tax policies in the coal sector.
The Directorate has advised the FBR to enhance IRIS system controls to prevent similar fraud by restricting access through foreign servers, similar to existing customs protocols. So far, Rs 16 billion in potential revenue loss has been mitigated, with further measures underway to strengthen tax credit verifications and prevent future fraud.
