Tyre dealer evades Rs900m tax: FBR

ISLAMABAD: The Federal Board of Revenue (FBR) has detected tax evasion of Rs898.4 million over a period of five years.

The tax was evaded by a Lahore-based wholesaler/retailer who suppressed the sales data of tyres and tubes between 2011 and 2015.

The government introduced additional sales tax at the rate of two per cent of the value of supplies of several goods, including tyres and tubes, in 2013.

The investigation revealed several cases of non-payment of the additional tax in the tyres and tubes sector.

The Directorate of Intelligence and Investigation of the FBR’s Inland Revenue detected the tax evasion by the wholesaler/retailer of tyres and tubes that was concealing its income.

The investigation discovered instances where supplies were made without getting the sales tax registration during 2010 and 2015.

Between July 2010 and October 2015, it parked Rs1.43 billion in 14 declared/undeclared bank accounts on account of concealed sales proceeds with a total tax liability of Rs254.52m.

The observation was supported by the fact that the average daily sales volume as per the record was approximately Rs866,836. Over five years, it would amount to approximately Rs1.5bn.

In addition to the sales tax liability of Rs254m, the income tax liability, including the penalty and default surcharge, stands at Rs644.38m for tax years 2011-15.

Investigation reports have been sent to the tax office concerned for adjudication and consequent recovery.

Courtesy by: https://dawn.com/

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