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PCA detects tax evasion of Rs2.28m by M/s Hakeem Ali Associates

PCA detects tax evasion of Rs2.28m by M/s Hakeem Ali Associates

KARACHI: Directorate of Customs’ Post Clearance Audit has detected duties and tax evasion of Rs 2.28 million allegedly by M/s Hakeem Ali Associate, it is learnt.

The official sources told Customs Today that M/s Hakeem Ali Associate imported three consignment of motorcycle and others vehicles parts under PCT Heading 2409.2387 and cleared PQ Karachi vide GDs  No KM-50637 on November 12, 2016, by paying customs duty at 10.2 percent after claiming benefit of SRO 667/2007.

However, the subject goods are correctly classifiable under PCT 2409.2457 attracting customs duty at 18 percent and income tax at 7 percent. Thus, by way of mis-declaration of classification, M/s Hakeem Ali associate evaded/short paid 2.28 million.

Therefore, the importer, has violated the provisions of Section 32 (1) (2) & (3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 36 of the Sales Tax Act 1990 and Section 149 of Income Tax Ordinance 2001 punishable under clauses (1), and 14 of Section 156(1) of the Customs Act 1969, Section 33(5) of the Sales Tax Act 1990 and Section 148 & 182 of Income Tax Ordinance 2001 and section 7A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Special Procedure Rules 2007(special procedures for payment of sales tax by the importers)  and under   relevant provisions of Income Tax Ordinance 2001.

Accordingly, an audit observation was issued to Hakeem Ali Associate for explaining and clarifying as to on what basis they have avoided/ evaded the livable duty and taxes. The importer, however, failed to come up with any tangible evidence and explanation and was also unable to refute the charges leveled by the department.