Sales Tax Fraud Spikes Via Fake Invoices Despite Automation

The quantum of sales tax fraud has considerably increased after the facilitation and automation of obtaining new sales tax registrations by the Federal Board of Revenue (FBR).

Sources told ProPakistani that the use of fake/flying invoices to commit sales tax fraud has increased after facilitation, automation, and easy ways to get sales tax registrations. The level of sales tax fraud under the flying invoices has not decreased after automation.

In the name of facilitation, now it is easy to get sales tax registration. The use of fake invoices has been reduced due to system checks, but the phenomenon of flying invoices has increased.

The process of the sales tax registration including physical verifications of the business premises was simplified by the FBR. However, this system has been massively misused by fraudsters to commit sales tax frauds, they added.

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