The Post Clearance Audit (PCA) South has unearthed a major financial scam involving a phantom company that illegally transferred over Rs 200 million abroad while evading Rs 140 million in duty taxes under the Export Facilitation Scheme (EFS).
The investigation, led by DG PCA Chaudhry Zulfiqar Ali and Director PCA South Sheeraz Ahmed, uncovered that the fictitious company had fraudulently secured EFS authorization to execute the scheme.
Acting on credible intelligence, PCA audit teams conducted site visits at the company’s purported business locations in Karachi and Lasbela, Hub district. Both addresses were found to house legitimate businesses that confirmed the ghost company had never operated there.
Further investigations revealed that the perpetrators registered a fake Karachi address on their National Tax Number (NTN) and Sales Tax Registration Number (STRN) certificates. Despite this, the company secured EFS authorization from the Customs Collectorate of Gwadar using another fraudulent address in Lasbela, Hub, which was not mentioned in its official records.
WeBOC data indicated that while the company conducted no exports after obtaining EFS authorization, it imported goods worth Rs 208 million under the scheme, evading taxes of approximately Rs 140 million. The company’s income tax returns showed minimal financial activity, yet it managed to transfer Rs 208 million abroad.
PCA South has lodged an FIR and formed two specialized teams to track down the suspects and their accomplices. The Federal Board of Revenue (FBR) has expressed grave concerns about the misuse of the EFS regime, which has caused significant losses to the national exchequer.
Senior PCA officials reaffirmed the FBR’s resolve to combat such fraudulent activities. “The FBR is intensifying efforts to prevent tax fraud and will leave no stone unturned in safeguarding national financial interests,” they stated.
The investigation is ongoing, with authorities working diligently to dismantle the network behind this elaborate financial deception and bring those responsible to justice.