The Federal Investigation Agency (FIA) arrested a private company owner and his son on Tuesday for allegedly committing a massive tax fraud of Rs 5 billion. The FBR confirmed that the company is suspected of evading taxes using fake sales invoices.

An investigation by the FBR revealed that the company, owned by individuals named Nawab Khan and Aftab, is involved in the fraudulent activity. The fraudulent scheme primarily targeted the steel sector in Karachi, according to the FBR. Both the father and son were arrested in Karachi, and a case was registered against them.

Over three months, the FBR conducted a thorough probe into the company’s records. They found that Nawab Khan was directly involved in issuing fake receipts and deceiving buyers with fake invoices to claim false tax returns.

According to FBR findings, the company made significant local purchases totaling Rs 13.88 billion from December 21, 2023, to February 23, 2024. Additionally, the FBR raised concerns about a disputed tax input claim of Rs 2.36 billion.