FBR Registers Money Laundering Case in Rs329.65m Tax Evasion

Key Points:

The FBR intelligence directorate in Faisalabad has registered a money laundering case against a taxpayer and his three sons.
The FIR alleges tax evasion of Rs329,650,895 through false statements and unlawful revision of wealth statements.
It says Rs730 million in cash was retrospectively added to the tax year 2014 wealth statement and passed to the sons as gifts to buy land and vehicles.

FAISALABAD: The Directorate of Intelligence and Investigation (Inland Revenue) has registered a criminal case against a Faisalabad taxpayer and his three sons on charges of money laundering involving alleged tax evasion of Rs329,650,895.

According to the first information report (FIR), case No 15/2026 was recorded on Oct 15, 2026, under Section 21 of the Anti-Money Laundering Act, 2010, read with Section 154 of the Code of Criminal Procedure, on the complaint of Inspector Inland Revenue Usman Ikram.

The accused are Muhammad Amir, a resident of Paradise Valley on Sheikhupura Road, his sons Muhammad Hadi, Muhammad Saad and Muhammad Ibrahim and other unnamed abettors, associates, partners, facilitators and counsels.

The FIR says a complaint was received that the accused had committed the offence of false statement under Section 192 of the Income Tax Ordinance, 2001, which is a predicate offence under the Anti-Money Laundering Act. It invokes sections 3, 4, 8, 9, 21 and 22 of the Act, punishable under Section 4(1).

The accused was registered with the Federal Board of Revenue (FBR) on June 28, 2013. He filed income tax returns and wealth statements from tax year 2014 to 2026, the report says. An examination of his record showed that he had revised the wealth statements for tax years 2014 to 2025 in 2025 and again on June 29, 2026.

The FIR says the revisions for the earlier years were unlawful because a wealth statement cannot be revised after five years of the due date for filing the return under Section 116(3) of the Ordinance. The due date for tax year 2014 was Nov 21, 2014. The five-year limit for revision expired on Nov 21, 2019.

Through the unlawful revision for tax year 2014, the accused retrospectively inflated cash by Rs730,000,000 and declared Rs733,500,000 against Rs3,500,000 declared in the original wealth statement filed on Dec 2, 2014, although his declared income for that year was Rs1,139,714, the FIR says.

It adds that the cash was brought forward to the subsequent years to reconcile the accretion in assets and to disguise property acquired from the commission of the predicate offence.

The report says the accused transferred funds to his sons in the form of gifts in tax years 2025 and 2026: Rs144,400,000 to Muhammad Hadi in tax year 2025 and Rs319,200,000 in tax year 2026, comprising Rs210,000,000 to Hadi, Rs69,200,000 to Muhammad Saad and Rs40,000,000 to Muhammad Ibrahim.

According to the FIR, the sons prima facie acquired immovable properties during the two tax years in an attempt to launder and integrate the untaxed funds into property, although their declared incomes did not show sufficient funds for the purchases.

The FIR lists properties acquired by Hadi worth Rs146,796,000 in tax year 2025 and Rs209,983,636 in tax year 2026. They include agricultural land measuring 122 kanal in Mouza Korala, Chiniot, valued at Rs117,796,000, a half share in another 59 kanal for Rs29,000,000, several plots in Mouza Korala and Chak No 216 R.B in Chak Jhumra and a Hyundai Sonata 2026 car worth Rs16,200,000.

PDF FIR No 15/2026 — Directorate of Intelligence & Investigation-IR, Faisalabad

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Saad’s acquisitions, totalling Rs69,200,000, include 12 kanal of agricultural land in Chak No 208 R.B, Chak Jhumra, worth Rs37,082,000, land in Chak No 163 R.B and Chak No 155 R.B, a Toyota Mark X 2010 car worth Rs3,800,000 and cash and bank balances of Rs19,298,000. Ibrahim acquired agricultural land in Chak No 155 R.B and held cash in hand of Rs22,250,000, with total properties of Rs40,000,000, the FIR says.

The directorate computed the tax sought to be evaded at Rs65,978,902 for tax year 2025 and Rs263,671,993 for tax year 2026, a total of Rs329,650,895, against declared taxable incomes of Rs11,942,182 and Rs25,878,377.

The FIR says the accused was given an opportunity of being heard through a notice dated Sept 16, 2026, served at his residence on Sept 17, with the reply due on Sept 28, but he filed no reply. His counsel appeared on Sept 30 and sought an adjournment, which was granted till Oct 7.

On Oct 7, the counsel appeared but furnished no reply or explanation, the report says, adding that the non-submission indicated the accused had no explanation and was relying on delaying tactics.

Investigating Officer Summar Khalid Farooq, Inspector Inland Revenue, concluded in the FIR that Amir had committed offences under Section 3(a) and (b) of the Act read with the predicate offence, while his sons and the other accused had committed offences under Section 3(a), (c) and (d).

Under Section 4(1), money laundering is punishable with rigorous imprisonment for one to 10 years, a fine of up to Rs25,000,000 and forfeiture of the property involved. Copies of the FIR were sent to the Special Judge (Customs, Taxation and Anti-Smuggling) in Lahore and the Director of the directorate in Faisalabad.