Lahore, Pakistan (November 5, 2024): The Federal Board of Revenue (FBR) has uncovered a massive tax fraud involving cybercriminals and insiders at the FBR and PRAL. The scam resulted in a staggering loss of Rs. 292.549 billion in sales tax revenue and an additional tax liability of Rs. 235.340 billion.
The cybercriminals exploited a dormant sales tax account belonging to a 79-year-old woman living abroad. They used this account to declare fictitious supplies worth Rs. 1.625 trillion, leading to significant tax evasion.
The fraudulent transactions were then transferred through a complex supply chain, ultimately benefiting several businesses in Lahore and Faisalabad. Business Recorder
The FTO has ordered an investigation into the matter and has directed the FBR to take necessary action against the individuals involved in the scam. The FTO has also raised concerns about the security of the FBR’s systems and the need to strengthen safeguards to prevent such incidents in the future.
This incident highlights the serious threat posed by cybercriminals and the need for robust cybersecurity measures to protect government systems and revenue. The FBR must take immediate steps to strengthen its security infrastructure and improve its monitoring systems to prevent similar frauds in the future.
