Following the recovery of nearly Rs. 700 million from a prominent Faisalabad exporter, the Federal Board of Revenue (FBR) is now on the hunt for Chief Financial Officers (CFOs) linked to sales tax fraud. In a surprising turn, many CFOs associated with such fraudulent activities have gone into hiding, fearing arrest by the FBR’s intelligence agencies.
The Regional Directorates of Intelligence & Investigations Inland Revenue have already apprehended five individuals across the country, including a key fraudster behind dummy business chains and four senior management members (CFOs) responsible for large-scale tax frauds that have caused billions in sales tax losses.
These arrests mark a significant step in FBR’s nationwide crackdown on organized sales tax fraud networks, marking the first time CFOs from major textile companies have been detained. In one case, a leading textile exporter from Faisalabad has already deposited the evaded sales tax, including penalties, amounting to a massive loss to the national treasury.
FBR has urged CFOs involved in fraudulent activities to settle their outstanding taxes, including penalties, to avoid prosecution. However, many CFOs, fearing imminent raids, have either fled or gone into hiding, obstructing the agency’s efforts to target fraudulent companies nationwide. Officials stated that these CFOs recognize the political backing behind the crackdown and are aware their eventual arrest and prosecution are likely
