The Federal Board of Revenue (FBR) is currently probing Vicky Trading Pvt. Ltd., a trading company, over alleged links to Bahria Town, a prominent real estate developer, involving suspected money laundering and tax evasion totaling Rs23 billion.
According to documents obtained, the investigation is underway at the special court of customs, taxation, and anti-smuggling under the Anti-Money Laundering Act (AMLA) 2010. This initiative stems from allegations that Vicky Trading Company managed 18 different bank accounts nationwide, as reported in Dawn.
Initiated on July 1, 2019, following a complaint from Mohammad Ejaz, an Inspector of Intelligence and Investigation (Inland Revenue) at the FBR, the inquiry suggests that directors of Vicky Trading Company were implicated in land purchases on behalf of Bahria Town, raising concerns about potential money laundering and tax evasion.
The investigation has uncovered that between 2014 and 2018, Bahria Town transferred Rs319 billion into Vicky Trading’s accounts, prompting scrutiny into the economic justifications behind these transactions.
Despite claims of engaging in trading and holding land for other entities, Vicky Trading allegedly did not acquire land in its own name using the transferred funds.
Moreover, the inquiry has shed light on the company’s unconventional operational structure, devoid of any employees on its payroll, hinting at possible tax evasion and obfuscation of financial transactions.
Preliminary findings from the FBR led to show-cause notices being issued to the accused under AMLA 2010, revealing discrepancies totaling Rs82.825 billion and prompting a demand of Rs23.541 billion from Vicky Trading.
In defense, the company argues that the investigation exceeded its mandate by scrutinizing records predating 2017, contrary to AMLA regulations, and alleges harassment.
The trial, involving directors Waqas Riffat, Waseem Riffat, Bilal Bashir, and Mohammad Awais of Vicky Trading Company, is being presided over by Special Judge Syed Irfan Haider. However, progress in the proceedings has been sluggish, with notices served to the accused but no substantial advancements reported.
