The Federal Tax Ombudsman (FTO) has ordered strict action against cybercriminals involved in a major tax fraud case, directing the Director General of Intelligence and Investigation (I&I), Inland Revenue, to trace and apprehend those responsible. The criminals allegedly used IP addresses and VPNs to introduce fake supplies into the tax system, causing significant financial loss to the national exchequer.
The case surfaced when a senior citizen and registered taxpayer since 2008 attempted to file his sales tax return for April 2025. He discovered that his password ID had been illegally accessed, and cybercriminals had fraudulently filed his return, adding fake supplies worth Rs. 133.125 million with a sales tax impact of Rs. 23.962 million.
According to the FTO, the fraudulent filing not only disrupted the complainant’s tax record but also introduced fake transactions into the official supply chain. The Director General of I&I has been tasked with tracing the original perpetrators — whether inside or outside the company — and enhancing investigative capabilities to track VPN users involved in such crimes.
The FTO also directed the Federal Board of Revenue (FBR) and Chief Commissioners of Inland Revenue in RTO Quetta to initiate legal proceedings and register an FIR against the culprits, as per Sales Tax General Order No. 12 of 2023.
Investigations revealed that M/s Rafi Enterprises, a taxpayer of RTO Quetta, knowingly purchased fake invoices without any actual movement of goods or legitimate payments, in violation of Section 73 of the Sales Tax Act. The company allegedly acted with full knowledge of the fraudulent nature of these transactions to evade taxes.
The FTO warned that weak enforcement encourages such fraudulent activities and stressed that the foundation of sales tax relies on honest self-assessment. To safeguard this trust, strict penalties and prosecution must follow once fraud is proven.
The order emphasized that authorities must not only identify all beneficiaries of fake invoices but also pursue their prosecution to the fullest extent of the law, ensuring such cases are not left unresolved.
