Karachi: PCA South Uncovers Rs478 Million Tax Evasion Scam Involving EFS and Money Laundering
The Post Clearance Audit (PCA) South has uncovered a major scam related to the Export Facilitation Scheme (EFS) and money laundering, with a tax evasion of Rs478 million.
During a physical inspection on December 18, investigators discovered the illegal removal of lead ingots worth Rs1 billion, which were intended for export. This breach of EFS regulations led to duty tax evasion of Rs337 million.
The company, already under investigation for involvement in a fake refund scam, also misused its manufacturing status to claim unwarranted tax exemptions, resulting in an additional Rs141 million in evaded taxes.
The audit revealed discrepancies in the company’s manufacturing capabilities, suggesting that goods were procured from unregistered local markets to falsify exports under EFS. A money laundering investigation has been launched due to import volumes that do not align with the company’s financial profile.
PCA South has filed an FIR under Section 32A of the Customs Act against the company’s two directors. One of the directors, identified as a leader of a tax evasion syndicate in the lead ingot sector, has previous cases with the IRS and FIA for fake invoicing and money laundering.
Officials from PCA said the Federal Board of Revenue (FBR) is intensifying its efforts to combat such fraud, with both the FBR Chairman and Member Customs vowing to take strict action against misuse of the export facilitation scheme.
The investigation was initiated by DG PCA Dr. Zulfikar Ali Chaudhry and carried out under the direction of PCA South Director Sheeraz Ahmed, following intelligence reports of suspicious activities at the company.
