Islamabad: Federal Tax Ombudsman Dr. Asif Mahmood Jah gave an important decision on the big tax fraud of 14 billion 88 crore rupees and issued an investigation order against Millat tractors and 82 big dealers. Directed.
According to a copy of the decision issued by the Federal Tax Ombudsman available to Express, the Federal Tax Ombudsman (FTO) has issued an order in favor of the poor cultivator/farmer community of Sindh and the FBR It has been directed to file the largest tax fraud case against M/s Millat Tractors Limited (MTL) worth Rs. Investigate.
The FTO has issued a detailed order against the said company dated 10 February 2023 stating that the complainant is the Senior Vice President of Sindh Chamber of Agriculture, Hyderabad and on behalf of his association, Messrs. Millat Tractors Ltd. A complaint has been filed against alleged illegal payment of sales tax refunds to Lahore (respondent) amounting to billions of rupees.
Transactions through black money and counterfeiting by using fake and flying invoices, benami names and irrelevant computerized National Identity Card numbers without complying with the mandatory conditions laid down under Sections 73 and 23 of the Sales Tax Act, 1990. Claimed illegal input tax adjustments through documents and received illegal refunds worth billions of rupees but the FBR never audited them for unknown reasons which falls under the category of gross negligence and incompetence.
The federal tax ombudsman has further stated in his decision that there has been massive corruption in the refund of sales tax in the sale of tractors from July 2017 to June 2022 and during the detailed hearing of the case, this corruption has been proved in concrete terms on the basis of which Actions have been taken against those responsible and investigation orders have been issued against the dealers involved in this fraud.
The order further states that in the said case, the tractor manufacturer along with the dealers caused a loss of more than 14 billion rupees to the national exchequer by way of sales tax refund.
The documents state that this decision was given after the evidence came out in the comprehensive hearing on the petition filed by the Sindh Chamber of Agriculture. The sale of the tractor was shown to the citizen, instead the identity card of another was submitted.
After hearing the stand of the parties on the completion of the hearing of the case where black money was invested in the business of tractors in this way, the Federal Tax Ombudsman has further said in his decision that the negligence and incompetence of the department has also come to light in this matter. In this case, FBR will have to conduct a comprehensive investigation and determine those responsible for negligence and incompetence.
According to the Federal Tax Ombudsman, action should be taken against those responsible. The Federal Tax Ombudsman has ordered the FBR to conduct a comprehensive investigation into the matter and submit a report within ninety days.
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