ISLAMABAD: The Federal Board of Revenue (FBR) investigations have unearthed that close to 10,000 people were allegedly involved in tax evasion and possible money laundering after tracing their cash transactions, reported The News.
The bureau is also looking into affairs of non-governmental organisations (NGOs) and International non-governmental organisations (INGOs) for their alleged involvement in money laundering and terror financing.
FBR sources told to The News on Friday that they have so far received multiple complaints of alleged money laundering and terror financing. They added that the bureau has already launched investigations against 36 to 40 of those cases.
The FBR has been pursuing cases of alleged tax evasion, money laundering and terror financing in order to comply with Financial Action Task Force (FATF) conditions.
The bureau had received multiple reports that people had set up fake companies. But they were instead being used for money laundering and terror financing. In such instances, the use of NGOs and INGOs were also found.
The FBR’s Directorate General of Intelligence & Investigation (I&I) Inland Revenue has launched a campaign against tax evaders. The campaign is particularly focusing on those individuals who are unregistered or registered and have been paying nominal tax despite making supplies worth billions of rupees.
“In this regard selected cases after proper scrutiny were identified so that genuine taxpayers do not feel any harassment being the asset of the nation,” an FBR official who spoke on the condition of anonymity said,
The official added the FBR’s Directorate General has compiled a data with startling disclosures about cash transactions running in trillions of rupees by less than 10,000 persons.
Initial investigation suggests that some entities have been using cash to avoid taxes. However, the official clarified that the bureau is mainly probing those cases of cash transactions which run in billions of rupees by an individual paying meager amount of tax or unregistered persons suspected to be involved in terror financing may be subjected to Anti-Money Laundering (AML) Act 2010.
The Directorate General is also looking into the involvement of some suspected NPOs/INPOs who may be involved in money laundering or terror financing in collaboration with Pakistan Center for Philanthropy (PCP).
However, the official warned that all such cases would be handled with care to ensure that an innocent person is not subjected to any unnecessary investigations or proceedings.
Originally published in