Hyderabad, The Federal Board of Revenue’s Directorate General of Intelligence and Investigation-Inland Revenue (I and I-IR) units in Hyderabad and Karachi have successfully dismantled a major network of tax fraudsters, preventing losses amounting to billions of rupees to the national exchequer.

According to Federal Board of Revenue, the crackdown is part of a broader national effort to combat tax evasion and fraud. The Hyderabad and Karachi directorates have filed FIRs against M/s Rehman Enterprises and M/s ZA Impex for tax fraud totaling Rs. 10 billion and Rs. 11.692 billion respectively, under the Sales Tax Act of 1990. The investigation identified organized groups creating fictitious companies and issuing fraudulent sales tax invoices, with their activities further corroborated by detailed financial intelligence reports from the Financial Monitoring Unit.

Despite attempts by the accused to delay proceedings and discredit the investigating officers through numerous complaints and a private legal challenge, these efforts were thwarted when the Lahore High Court suspended the baseless allegations against the DG I and I-IR on June 3, 2024. The FBR emphasizes its commitment to prosecuting those involved in undermining the tax system and asserts that such actions protect revenue and promote fairness for all taxpayers.