Karachi, Pakistan: The Federal Board of Revenue (FBR) has uncovered an alleged tax evasion scheme involving a network of phantom companies linked to the cement industry.
The investigation began with an attempt to locate a company called Al-Junaid Impex, which was believed to be involved in tax evasion. Despite following multiple leads, the FBR was unable to find any physical presence for the company. Profit
Further investigation revealed that Al-Junaid Impex was a fictitious company created to issue fake invoices and help cement manufacturers evade taxes. The FBR claims that this scheme allowed certain players in the industry to evade taxes worth over Rs11 billion.
One of the companies implicated in the scheme is Power Cement, a significant player in Pakistan’s cement industry. However, the FBR has only been able to trace tax evasion worth Rs32 crores by Power Cement. This raises questions about the extent of the scheme and the involvement of other players in the industry.
The FBR’s investigation into this tax evasion scheme highlights the need for increased vigilance and enforcement measures to combat illicit activities in the country’s economy.
