The Federal Board of Revenue (FBR) is taking decisive steps to combat sales tax fraud in Pakistan. In a recent directive, the FBR has instructed its regional offices to scrutinise transactions of significant value that have led to minimal or no net sales tax payments. This proactive move is taken to eliminate the fraudulent sales tax practices.
Field officers are now responsible for gathering complete data and conducting extensive examinations to check the correctness of declarations, particularly those involving counterfeit or fraudulent invoices, according to FBR rules distributed to its Inland Revenue regional offices.
The FBR’s strategy has a strong emphasis on transactions involving counterfeit or fraudulent invoices, which are used to inflate expenses or unfairly lower taxable revenue. The FBR intends to expose and penalise those who engage in misleading practises by scrutinising these transactions.
This initiative also provides an opportunity for businesses to review and rectify unintentional errors in their tax declarations by collaborating with field officers during audits and investigations.