The Federal Board of Revenue (FBR) has established a procedure for arresting individuals involved in tax fraud involving fake invoices and flying invoices issued by sales tax-registered persons.
According to the FBR, the registration of those involved in fraud will be suspended and then blacklisted. A show-cause notice will be issued within seven days, based on solid evidence, before blacklisting.
Moreover, FBR clarified that officials, staff, or internal facilitators involved in tax fraud will also face action. Before any arrest, consultation will be mandatory with at least two representatives from the trader community.
Read More: FBR mandates consultation before businessmen’s arrest in tax cases
Additionally, individuals involved in suspicious, fake, or flying invoices will be thoroughly investigated. Those who benefitted from the fraud will face legal action and FIRs will be registered.
The Commissioner Inland Revenue will be authorized to approve the initiation of any inquiry. However, no one will be arrested until the inquiry is completed and final approval is obtained from the FBR Member Inland Revenue Operations.
FBR’s Assessment Processing Cell will identify fake or flying invoices. Two tax officers will analyze the suspected trader’s data, including sales and purchase transactions and tax returns.