KARACHI: The Federal Investigation Agency (FIA) investigation has revealed that Axact has failed to provide documentary evidence to prove his sources of income and FIA prepares to file cases of money-laundering and tax evasion against the IT company.
Investigation team of FIA has revealed in its report that while checking the financial records of the company it came into light that the company transferred foreign money worth Rs 1 billion to Pakistan in 2011. The amount was then backed by as sale of software and IT services. The company than enjoyed the advantage of exemption and concessions for promoting software export. However, with regard to that income, Axact failed in providing concrete evidence.
Up to 2014, company had thrice time took the advantage of tax exemption and concessions and moved over Rs. 8 billion to Pakistan without paying tax on income. Axact has no documentary evidence in this regard as well. According to investigation, the said amount was transferred from Dubai to Pakistan in installment from hundreds to thousands of dollars.
Official of FIA said that Axact has no documentary evidence to back his claim and if the income is generated outside the scope of Axact’s prescribed business, then Axact has involved in money-laundering. FIA officials are preparing to file three to four cases against Axact on charges of money-laundering, tax evasion, and illegal use of IT business.
The FIA director will present a detailed report on evidence against Axact collected so far to Interior Minister Chaudhry Nisar Ali today (Saturday). The decision regarding filing the case or extension in time to collect more evidence will be decided after the meeting.
The tax authorities, the Interior Ministry and the Securities and Exchange Commission of Pakistan (SECP) have started tight investigation against Axact on allegations made by the New York Times of dealing in fake degrees globally.