FBR to disclose names involved in issuing fake invoices

Business Recorder reported that the FBR will publish the identities and registration details of people linked to fake or flying invoices. Under a new penalty clause, numbered 29, a registered person found after notice and adjudication to have issued an invoice for a sham or fictitious deal will pay a penalty equal to the invoice value, sales tax included. That person will also be listed on a public register of simulated invoice issuers.

Businesses that claim input tax on invoices from a listed issuer will see that credit reversed automatically, starting the day the issuer is listed. Removal from the register depends on full payment of the penalty and default surcharge, along with proof of compliance. A separate clause, numbered 30, imposes a penalty of 20 percent on any input tax that cannot be matched with the output tax declared by the supplier.

Clause 31 of Section 33 penalises a registered person who does not reverse such credit within 60 days of the issuer's listing. The FBR's instructions to field offices introduced these changes to curb fake invoicing and encourage accurate declarations across supply chains.