The Federal Board of Revenue (FBR) has frozen Telenor Pakistan’s bank accounts, alleging an income tax default of around Rs 3.5 billion.
Telenor informs Profit that the FBR’s move is being challenged in the Islamabad High Court, and that they are unable to comment because the case is pending. The corporation is in court seeking a stay, which is expected in a day or two.
Actions like these by the FBR against telecom corporations are fairly uncommon, and in virtually all cases, their attempts are either halted or overruled by the courts.
However, according to FBR sources, all internal appellate fora as well as the Islamabad High Court dismissed Telenor’s pleas and ordered the corporation to pay government dues.
The Enforcement Zone of the Large Taxpayers’ Office in Islamabad launched the recovery processes and attached Telenor’s bank accounts in all major banks in the nation.
Furthermore, FBR has sent notifications on a number of additional third parties who are holding money or other assets on behalf of or owed to Telenor.
Following the attachment orders, FBR sources say they are considering additional actions such as sending notices to all Telenor franchises across the country for direct recovery of amounts payable by them in favor of Telenor, and possibly even writing to the company’s head office in Norway to seek enforcement through the International Taxes Wing, as well as freezing and liquidating financial assets of the company such as its investments in mutual funds, treasury bills, and in securities.
However, none of these steps have yet been initiated.
On a question from this scribe, Telenor Pakistan Chief Corporate Affairs Officer Kamal Ahmed stated that as a law-abiding and ethical corporate citizen, Telenor Pakistan takes a highly responsible approach to meeting its tax duties on time and “we take immense pride in our position as one of the leading contributors to the national exchequer.”
“We recently received a notice from the Federal Board of Revenue for the recovery of a disputed tax demand adding that we have reservations on these alleged tax demands and have challenged the notice and appealed the order within the hierarchy of Islamabad High Court,” he claimed.
“Since the matter is currently sub judice, we cannot comment any further on this” he added.
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