A Karachi-based investigation unit of the Federal Board of Revenue (FBR) has discovered an alleged embezzlement of Rs. 20 billion in Khyber Pakhtunkhwa (KP).
As per inside sources, FBR’s special unit is investigating the scandal in which development funds of Rs. 20 billion were transferred to several bank accounts and withdrawn in cash, without paying taxes.
The massive amount was transferred to accounts located in KP’s Malakand division (tax-exempted area) between 2014 and 2018.
A well-placed source in the department said the pattern of the transactions indicates that the money was routed to conceal the original source or to evade taxes, which amounts to millions of rupees.
He said that the department identified about 15 people related to this scam and has lodged an FIR against them. Their names have not been revealed.
He said that some of the people involved were facing departmental inquiries and had either obtained a stay order or bail from the court.
We have established tax evasion against these people, as the FBR does not have any tax record of those who received funds in their bank accounts.
The FIA is also looking into the scam, he said, adding that the agency is investigating whether the money was raised for money laundering or terror financing.