- CTO Karachi arrests Naveed Khan for over Rs 1 billion sales tax fraud
- Naveed Khan, owner of M/S Blue Sky Traders, was arrested on December 12, 2024
- Khan was presented in court on December 13, 2024, and remanded until December 17, 2024
- He faces up to 10 years in prison if convicted
- The arrest is part of a broader crackdown by the CTO, a branch of the Federal Board of Revenue
- Sales tax fraud is a growing issue, causing significant revenue lossGovernment’s Response to Sales Tax Fraud
- Prime Minister Shehbaz Sharif formed a joint inquiry team to tackle sales tax fraud
- The team will analyze fraud cases, scrutinize transactions, and check for collusion
- It will evaluate the role of the Federal Tax Ombudsman in legal proceedings
- The team will identify policy and automation gaps and suggest improvements
- Recommendations for penal actions and enhancements to FBR’s systems are expected
- A detailed report with actionable steps is due within 30 daysStrengthening Sales Tax Laws
- FBR updated the definition of sales tax fraud in the Sales Tax Act of 1990 for 2025
- New definition includes deceptive practices like falsifying returns and inflating credits
- These changes aim to close loopholes and enhance enforcement to protect revenues
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
