What's new

Accounts of 29 sugar mills: LTU Karachi ‘detects’ massive revenue leakage (A must read to understand how sugar mafia operates)

Patriot forever

FULL MEMBER
Jun 2, 2020
1,244
3
2,399
Country
Pakistan
Location
Pakistan
Accounts of 29 sugar mills: LTU Karachi ‘detects’ massive revenue leakage
Muhammad Ali 21 Jan 2021
Facebook
Twitter
Whatsapp
Welcome

KARACHI: Large Taxpayers Unit (LTU), Karachi has “detected” a whopping Rs 200 billion revenue leakage in the financial ledgers of 29 sugar mills during audit.
According to the sources, the large tax collecting arm of Federal Board of Revenue (FBR) has initiated audit exercise of 29 sugar mills for last four financial years after observing suppressed sales and suspicious business transactions.
They said that the LTU Karachi had carried out over 120 audits in income tax and around 100 sales tax audits of which over 50 cases had been disposed of by December 2020, despite stay orders by Sindh High Court (SHC). As a result, a whooping revenue leakage of over Rs180 billion has been detected in income tax while the rest of the tax evasion was noticed in sales tax.
Furthermore, the sources anticipated that the tax department would raise the total tax demand of over Rs. 500 billion against these sugar mills if the stay orders were vacated. Replying to a question, sources said the audits were conducted in the light of sugar commission report besides the LTU Karachi also obtained the relevant information from banks, cane commissioner, Pakistan customs, Security Exchange Commission of Pakistan and others and utilized the same that led the discovery of Rs. 200 billion revenue leakages.
To another question, sources replied that the sugar production was more than the domestic demand, which was 5.3 metric ton but the sugar mill owners in connivance with the Benami investors, who might be a relative or a family member of the mill owners, monopolized the demand and supply chain of the said commodity, creating artificial demand in the market that left the consumers with no option but to buy the commodity at high price.
Elaborating the modus operandi of the sugar mill owners, they said that the Benami investors bought sugar in bulk during crushing season at low prices and hoarded the same at sugar mills and controlled the sales to create artificial demand, resulting increase in sugar price.
“During audit, it was found that the sugar mills owners are operating multiple bank accounts and keep transferring funds from one to another to conceal the inflow and outflow of funds,” sources said. The tax department during audit also found multiple unexplained credit entries of bank statements, which were higher than the sales declared by the sugar mills; they said and added that these sugar mills sold over 90 percent of stock to the unregistered persons. In addition, the LTU, Karachi also detected serious discrepancies in the subsidy received by the sugar mills from provincial and federal governments, sources said and added that the sugar mills owners appeared feckless to clarify their position when they were asked to satisfy the department in the issues related to the verification of exports to Afghanistan, advance from customers, missing stock, suppression of sales, suppression of production, etc. Sources informed that after the deployment of tax officers at sugar mills to monitor the daily production, substantial increase in crushing and production were observed as compared to the figures reported last year.
In response to a query, the sources stated that the LTU Karachi started collecting bank statements of ongoing tax period and reconciling it with monthly sales tax return and daily production report in order to avert all malpractices, which were done in past to control the market price of the sugar.
Copyright Business Recorder, 2021


An excellent article how sugar crisis is created and profited from by mafias.
 

R Wing

SENIOR MEMBER
May 23, 2016
2,211
6
3,149
Country
Pakistan
Location
Pakistan
Accounts of 29 sugar mills: LTU Karachi ‘detects’ massive revenue leakage
Muhammad Ali 21 Jan 2021
Facebook
Twitter
Whatsapp
Welcome

KARACHI: Large Taxpayers Unit (LTU), Karachi has “detected” a whopping Rs 200 billion revenue leakage in the financial ledgers of 29 sugar mills during audit.
According to the sources, the large tax collecting arm of Federal Board of Revenue (FBR) has initiated audit exercise of 29 sugar mills for last four financial years after observing suppressed sales and suspicious business transactions.
They said that the LTU Karachi had carried out over 120 audits in income tax and around 100 sales tax audits of which over 50 cases had been disposed of by December 2020, despite stay orders by Sindh High Court (SHC). As a result, a whooping revenue leakage of over Rs180 billion has been detected in income tax while the rest of the tax evasion was noticed in sales tax.
Furthermore, the sources anticipated that the tax department would raise the total tax demand of over Rs. 500 billion against these sugar mills if the stay orders were vacated. Replying to a question, sources said the audits were conducted in the light of sugar commission report besides the LTU Karachi also obtained the relevant information from banks, cane commissioner, Pakistan customs, Security Exchange Commission of Pakistan and others and utilized the same that led the discovery of Rs. 200 billion revenue leakages.
To another question, sources replied that the sugar production was more than the domestic demand, which was 5.3 metric ton but the sugar mill owners in connivance with the Benami investors, who might be a relative or a family member of the mill owners, monopolized the demand and supply chain of the said commodity, creating artificial demand in the market that left the consumers with no option but to buy the commodity at high price.
Elaborating the modus operandi of the sugar mill owners, they said that the Benami investors bought sugar in bulk during crushing season at low prices and hoarded the same at sugar mills and controlled the sales to create artificial demand, resulting increase in sugar price.
“During audit, it was found that the sugar mills owners are operating multiple bank accounts and keep transferring funds from one to another to conceal the inflow and outflow of funds,” sources said. The tax department during audit also found multiple unexplained credit entries of bank statements, which were higher than the sales declared by the sugar mills; they said and added that these sugar mills sold over 90 percent of stock to the unregistered persons. In addition, the LTU, Karachi also detected serious discrepancies in the subsidy received by the sugar mills from provincial and federal governments, sources said and added that the sugar mills owners appeared feckless to clarify their position when they were asked to satisfy the department in the issues related to the verification of exports to Afghanistan, advance from customers, missing stock, suppression of sales, suppression of production, etc. Sources informed that after the deployment of tax officers at sugar mills to monitor the daily production, substantial increase in crushing and production were observed as compared to the figures reported last year.
In response to a query, the sources stated that the LTU Karachi started collecting bank statements of ongoing tax period and reconciling it with monthly sales tax return and daily production report in order to avert all malpractices, which were done in past to control the market price of the sugar.
Copyright Business Recorder, 2021


An excellent article how sugar crisis is created and profited from by mafias.
"Must read" kyoun hai when successive military and civil governments have done jack shit about it?

Even now, IK and Bajwa just sitting on sugar commission report while sugar mafia making billions by playing the system.

This is just painful stuff, man. I've stopped reading it because nobody in this country cares enough to do anything about it.
 

Patriot forever

FULL MEMBER
Jun 2, 2020
1,244
3
2,399
Country
Pakistan
Location
Pakistan
"Must read" kyoun hai when successive military and civil governments have done jack shit about it?

Even now, IK and Bajwa just sitting on sugar commission report while sugar mafia making billions by playing the system.

This is just painful stuff, man. I've stopped reading it because nobody in this country cares enough to do anything about it.
Bro this is all brought forward by follow up investigations of sugar commission report. The actions are blocked by stay orders these mafias got from court, our system is rigged to the extent that it ties government hands. Give it a read, it is a very well written article, gets to the root of problem and this mafia's modus operandi.
 

El Sidd

ELITE MEMBER
Apr 5, 2017
58,356
9
47,675
Country
Pakistan
Location
Canada
Bro this is all brought forward by follow up investigations of sugar commission report. The actions are blocked by stay orders these mafias got from court, our system is rigged to the extent that it ties government hands. Give it a read, it is a very well written article, gets to the root of problem and this mafia's modus operandi.
That report also said cabinet and PM enabled this corruption.

I don't see you pulling out article 62 63
 

Patriot forever

FULL MEMBER
Jun 2, 2020
1,244
3
2,399
Country
Pakistan
Location
Pakistan
That report also said cabinet and PM enabled this corruption.

I don't see you pulling out article 62 63
Care to explain where in the report it said so? Did one of these journalists tell you?


I think you don't understand the case at all. It is better not to troll on a serious topic.
 

S A L M A N.

FULL MEMBER
Dec 30, 2016
142
1
484
Country
Pakistan
Location
Pakistan
That report also said cabinet and PM enabled this corruption.

I don't see you pulling out article 62 63
"There's a point far out there, when the structures fail you. When the rules aren't weapons anymore, they're shackles"
- Commissioner Gordon, TDKR

"When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it."
- Frédéric Bastiat

Never forget this.

Our entire system is a prostitute of these mafias. And obviously that makes the current govt (for all their dedication and honesty) complicit in the crime.

But logically, the govt's hands are tied. Not to mention, there are some vested interests within the govt itself.

However, for all your pessimism, a start has been made on the long, hard road to achieving true independence, of destroying these mafias and this oligarchy. It will take time, but good times are coming.

The night is darkest just before the dawn.
 

xyxmt

ELITE MEMBER
Apr 27, 2012
22,048
-5
19,669
Country
Pakistan
Location
Canada
easy solution, let the private companies import Sugar...best way to kill a mafia.
 

fitpOsitive

ELITE MEMBER
May 27, 2015
9,131
14
10,344
Country
Pakistan
Location
Uruguay
Accounts of 29 sugar mills: LTU Karachi ‘detects’ massive revenue leakage
Muhammad Ali 21 Jan 2021
Facebook
Twitter
Whatsapp
Welcome

KARACHI: Large Taxpayers Unit (LTU), Karachi has “detected” a whopping Rs 200 billion revenue leakage in the financial ledgers of 29 sugar mills during audit.
According to the sources, the large tax collecting arm of Federal Board of Revenue (FBR) has initiated audit exercise of 29 sugar mills for last four financial years after observing suppressed sales and suspicious business transactions.
They said that the LTU Karachi had carried out over 120 audits in income tax and around 100 sales tax audits of which over 50 cases had been disposed of by December 2020, despite stay orders by Sindh High Court (SHC). As a result, a whooping revenue leakage of over Rs180 billion has been detected in income tax while the rest of the tax evasion was noticed in sales tax.
Furthermore, the sources anticipated that the tax department would raise the total tax demand of over Rs. 500 billion against these sugar mills if the stay orders were vacated. Replying to a question, sources said the audits were conducted in the light of sugar commission report besides the LTU Karachi also obtained the relevant information from banks, cane commissioner, Pakistan customs, Security Exchange Commission of Pakistan and others and utilized the same that led the discovery of Rs. 200 billion revenue leakages.
To another question, sources replied that the sugar production was more than the domestic demand, which was 5.3 metric ton but the sugar mill owners in connivance with the Benami investors, who might be a relative or a family member of the mill owners, monopolized the demand and supply chain of the said commodity, creating artificial demand in the market that left the consumers with no option but to buy the commodity at high price.
Elaborating the modus operandi of the sugar mill owners, they said that the Benami investors bought sugar in bulk during crushing season at low prices and hoarded the same at sugar mills and controlled the sales to create artificial demand, resulting increase in sugar price.
“During audit, it was found that the sugar mills owners are operating multiple bank accounts and keep transferring funds from one to another to conceal the inflow and outflow of funds,” sources said. The tax department during audit also found multiple unexplained credit entries of bank statements, which were higher than the sales declared by the sugar mills; they said and added that these sugar mills sold over 90 percent of stock to the unregistered persons. In addition, the LTU, Karachi also detected serious discrepancies in the subsidy received by the sugar mills from provincial and federal governments, sources said and added that the sugar mills owners appeared feckless to clarify their position when they were asked to satisfy the department in the issues related to the verification of exports to Afghanistan, advance from customers, missing stock, suppression of sales, suppression of production, etc. Sources informed that after the deployment of tax officers at sugar mills to monitor the daily production, substantial increase in crushing and production were observed as compared to the figures reported last year.
In response to a query, the sources stated that the LTU Karachi started collecting bank statements of ongoing tax period and reconciling it with monthly sales tax return and daily production report in order to avert all malpractices, which were done in past to control the market price of the sugar.
Copyright Business Recorder, 2021


An excellent article how sugar crisis is created and profited from by mafias.
My father also died while defending one of these sugar mills from harami tola in Sindh. Murdered. We never received his dues either. Such a lovely thing it is, isn't it?
 

R Wing

SENIOR MEMBER
May 23, 2016
2,211
6
3,149
Country
Pakistan
Location
Pakistan
"There's a point far out there, when the structures fail you. When the rules aren't weapons anymore, they're shackles"
- Commissioner Gordon, TDKR

"When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it."
- Frédéric Bastiat

Never forget this.

Our entire system is a prostitute of these mafias. And obviously that makes the current govt (for all their dedication and honesty) complicit in the crime.

But logically, the govt's hands are tied. Not to mention, there are some vested interests within the govt itself.

However, for all your pessimism, a start has been made on the long, hard road to achieving true independence, of destroying these mafias and this oligarchy. It will take time, but good times are coming.

The night is darkest just before the dawn.
I like you. Welcome to the forum. Hope to see more posts.
 

Path-Finder

ELITE MEMBER
Feb 7, 2013
19,798
1
28,645
Country
Pakistan
Location
United Kingdom
"There's a point far out there, when the structures fail you. When the rules aren't weapons anymore, they're shackles"
- Commissioner Gordon, TDKR

"When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it."
- Frédéric Bastiat

Never forget this.

Our entire system is a prostitute of these mafias. And obviously that makes the current govt (for all their dedication and honesty) complicit in the crime.

But logically, the govt's hands are tied. Not to mention, there are some vested interests within the govt itself.

However, for all your pessimism, a start has been made on the long, hard road to achieving true independence, of destroying these mafias and this oligarchy. It will take time, but good times are coming.

The night is darkest just before the dawn.
you clearly have no idea the mussebath you are arguing with!
 

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Top Bottom