FBR to Probe High-Volume Transactions With Little Sales Tax Payments

The Federal Board of Revenue (FBR) has directed its field formations to investigate those high volume/value of transactions with little or no net sales tax payment to detect sales tax frauds. According to the FBR’s procedure issued to the Inland Revenue field formations, the field officers shall obtain complete data and make thorough scrutiny to ascertain the truthfulness of declarations to deal with cases involving fake/flying invoices. The FBR has directed the field formations to immediately investigate the following situations: As per the directions, when an issuer of fake/flying invoices is identified; scrutiny of the forward and backward transactions i.e. purchases and sales in Annex A and Annex C of their sales tax returns, shall help in uncover other wrongdoers in the supply chain. fake/flying sales tax invoices. They shall particularly focus, inter alia, on the following characteristics of registered persons’ declarations for the discovery of fraudulent use of fake/flying invoices. On having captured the data of fake/flying invoices and particulars of registered persons involved in the fraudulent activity, the staff shall also verify the physical existence of such registered persons and such reports shall be made part of the record, the directions added.