Benami accounts of beverage firm detected

Directorate General of Intelligence & Investigations (IR) has detected suspicious transactions committed by a beverage dealing concern of Multan, using benami accounts to commit tax evasion and channel a huge portion of its receipts from various sources through the bank accounts of its employees.

According to details, on the basis of credible information, Directorate of I&I-IR, Multan initiated investigations against a beverage dealing concern situated in Multan. The said concern is involved in evasion of tax and the style adopted to evade tax is to channel a huge portion of its receipts from various sources through the bank accounts of its employees.

Director General Intelligence & Investigations-IR, Khawaja Tanveer Ahmed highly appreciated the efforts of officers and the staff involved in the investigations. One of the employees having an annual salary of Rs 1,158,872 and no other source of income was selected to start the investigation and his tax record along with his bank accounts was scrutinised. It was found that during tax years 2011 to 2015, Rs 1.789 billion were credited in his accounts. Consequently, the said employee was called on 22-09-2016 u/s 176 of the ordinance to bear witness regarding his accounts. He submitted his, year wise, total receipts amounting to Rs 30.641 million during tax years 2011 to 2014. It was found that the above figures are almost the same as declared in his income tax returns except for tax year 2013, where he has not filed any return. However, he failed to explain the sources of remaining receipts of Rs 1.75 billion.

After investigation into the matter, it was found that the employee has no plausible source for these huge transactions and the transacting beyond means or lawful source renders the transaction as “suspicious transaction.” Keeping in view the sources of the employee and cycle of unlawful money in his accounts, the I&I-IR investigators are looking into the sources of such huge amount in the bank accounts of a low-paid employee. It can be assumed that the beverage concern is parking its concealed money in his employee’s bank accounts, ie benami accounts and that his employee is a party to this entire venture.

Accordingly, investigation reports were sent to RTO Multan where proceedings in respect of the employee for the tax years 2011, 2012, 2013 and 2014 have been finalised resulting in creation of tax demand amounting to Rs 819.6 million. This tax demand includes Rs 410.8 million of income tax and Rs 408.9 million of penalty. The Directorate General of Intelligence & Investigations-IR also initiated the proceedings under section 203 of Income Tax Ordinance, 2001 to lodge FIR against tax evaders.