The Federal Board of Revenue (FBR) proceeded on to seal an office of the Pakistan Mobile Communication Limited (PCML) over the non-payment of income tax which equals an amount of Rs. 25.6 billion.
In accordance with the documents that have been made available with this scribe, FBR’s Large Taxpayers’ Office-Islamabad has gone on to seal PMCL’s F-8 office due to non-payment of an amount equaling Rs. 22.03 billion income (along with Rs. 3.3 billion default surcharge) for the tax year ended 2018.
The documents read : “Pakistan Mobile Communication Limited (PCML) is an existing taxpayer falling in the jurisdiction of this office [LTU Islamabad]. An income tax amount of Rs. 25,393,653,480 was outstanding against the said company, which has been refraining from clearing its liabilities deliberately, dishonestly and without any lawful excuse, thus causing huge loss to the national exchequer. Therefore, on the basis of facts stated inter alia, I, Ahmad Shakeel Babar, Deputy Commissioner Inland Revenue, in exercise of the powers vested in me in terms of section 138 of the Income Tax Ordinance 2001 read with section 48 of the Sales Tax Act, 1990, order to seal the business premises of the defaulter till the payment of outstanding dues in full or withdrawal of this order.”
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Moreover, it was also claimed that any act of non-compliance or indeed defiance will be declared as tantamount to obstruction of justice in the course of discharge of functions of an income tax authority and shall also be subject to punishment on conviction with respect to either fine or imprisonment for a term which shall not exceed one year or indeed both under section 196 of the Income Tax Ordinance, 2001.
A spokesperson from Jazz, as one might expect, has gone on to defend his company’s position, by claiming that not only is his company a law-abiding and responsible corporate citizen, but also happens to significantly contribute towards Pakistan’s economy over the course of the past 25 years.The spokesperson said : “We have received a notice from FBR this afternoon. Jazz has made tax submissions based on legal interpretations of the tax owed. We will review and take measures under our legal obligations and will collaborate with all concerned institutions for an early resolution of this issue.”