Islamabad, August 9, 2025 – The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to investigate IP addresses linked to a high-profile sales tax fraud involving fake invoices worth millions of rupees.
The case came to light when a 68-year-old commercial importer, registered for sales tax since 2008, attempted to file his April 2025 return and discovered fraudulent activity. Cybercriminals allegedly hacked his tax credentials, altered official records, and submitted a false sales tax return showing fake supplies of Rs. 133.125 million, resulting in a GST impact of Rs. 23.962 million.
The transactions were traced to Rafi Enterprises, a taxpayer under RTO Quetta. Investigations revealed that the fraud was executed using multiple IP addresses originating from Battagram, Islamabad, and Frankfurt, with suspects likely using VPN services to conceal their identities. Despite repeated notices, internet service providers have not yet provided subscriber details.
The FTO highlighted that combating such sophisticated cyber-enabled tax crimes requires advanced digital forensics and monitoring capabilities, which are currently inadequate at both FBR and Pakistan Revenue Automation Limited (PRAL).
The inquiry determined that the beneficiary knowingly purchased fake invoices in violation of Section 73 of the Sales Tax Act. The FTO has instructed the FBR to register FIRs and prosecute all involved under relevant laws, while also enhancing monitoring systems to protect taxpayer credentials from future misuse.
