Mobilink Jazz Head Office in Islamabad got sealed by FBR earlier on Wednesday for not paying tax of Rs 25.3 Billion. Federal Board of Revenue FBR issued the order thus Jazz headquarter in Islamabad F-8 was sealed for non-payment of income tax for the year 2018.
The big income tax amount was pending for the year 2018 and the company abstains from paying the income tax without giving any lawful justification for the negligence.
As stated in the document:
“Pakistan Mobile Communication Limited ( hereinafter referred to as “the defaulter”) is an existing taxpayer falling in the jurisdiction of this office. Income Tax amount of Rs. 25,393,653,480/- is outstanding against the defaulter while the defaulter is refraining itself deliberately, dishonestly and without lawful excuse to discharge tax liability and thus causing huge loss to the national exchequer.
On the basis of facts stated inter alia, I Ahmed Shakeel Akbar Deputy commissioner inland Revenue in the exercise of 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.”
The case is corresponding to the deployment of 13,000 towers covering the country. The income tax is of amount Rs. 22.03 billion(3.3 billion default surcharge. Islamabad LTU demanded the income tax and surcharge in the year 2019.
The company states that under Section 97 of the Income Tax Ordinance, gain from the sale of an asset from a holding company to a subsidiary is not taxable. PMCL first appealed against the demand of tax to Commissioner Income Tax and later to Appellate Tribunal of Inland Revenue but the decision was sustained.
After the payment remains pending for one year FBR took the step and an order was issued under Section 138(1) of the Income Tax Ordinance 2001 with a deadline to pay arrears of tax by 1300 hours (1:00 pm) on October 28 to Pakistan Mobile Communication Limited.
A recovery notice issued to the company is challenged in High Court Islamabad and the hearing is on Thursday.
“Company has 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 institutions for an early resolution of this issue.” Jazz spokesperson, Aisha Sarwari, told Dawn
Jazz is one of the largest Telecom Operator Company of Pakistan and we expect that the matter will be resolved in the most appropriate manner as soon as possible so that the company can continue to work smoothly.