CFOs Evading Arrest Amid FBR’s Crackdown on Sales Tax Fraud
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Chief Financial Officers (CFOs) involved in sales tax fraud schemes in Pakistan are reportedly going into hiding amid fears of imminent arrest by the Federal Board of Revenue (FBR), according to a report by Business Recorder.
For the first time, authorities are targeting senior executives for their role in such fraudulent activities.
Recently, a well-known textile exporter from Faisalabad made a substantial payment covering evaded sales tax along with penalties. Sources suggest that other CFOs are worried they could be next, following the detention of their peers engaged in similar schemes.
Many CFOs have fled or are laying low to avoid possible raids from the FBR’s enforcement team, which is stepping up efforts to tackle fraudulent tax operations nationwide. Concern is mounting among the executives that increasing political support for the FBR’s crackdown may result in their arrest and subsequent prosecution.
The FBR’s Directorate of Intelligence and Investigation Inland Revenue has recently arrested five individuals, including the mastermind behind a network of fake companies and four senior officials involved in the scam, which has cost the national treasury billions in lost sales tax revenue.
This large-scale crackdown marks a significant escalation in the FBR’s enforcement actions, aiming to improve tax compliance. The FBR is urging CFOs to settle their outstanding tax liabilities, including principal and penalty amounts, to avoid legal action.
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