Pakistan Mobile Communications Limited Jazz bank accounts have been frozen by the Federal Board of Revenue (FBR) for failing to pay income tax in the sum of Rs. 5.7 billion.
According to reliable sources, the Enforcement Zone of the Large Taxpayers’ Office in Islamabad launched a massive recovery operation against the country’s largest telecom company Jazz on Wednesday, attaching its bank accounts across the country for committing Rs. 5.7 billion in income tax default.
According to reliable sources, Jazz, formerly known as Mobilink, was required to pay the government exchequer Rs. 5.7 billion by March 25th as an advance tax liability for the first quarter of the current fiscal year under the income tax law.
However, the company failed to pay its tax obligations, prompting FBR to file a recovery action and block the company’s bank accounts.
In addition to attaching bank accounts to recover evaded taxes, recovery notices were placed on Jazz franchises in all major cities across Pakistan, allowing for direct recovery from monies owed to Jazz.
A tax default can be recovered by the Inland Revenue Department from any third party holding money or assets in the defaulter’s favor, according to the Income Tax Act.
FBR has sent notices to a number of additional third parties who hold funds or other assets on behalf of or owed to Jazz.
It is worth noting that this is the FBR’s third major enforcement campaign against telecom providers in less than a week, following similar measures against Telenor and Zong.
To read our blog on “After Telenor, FBR froze Zong’s bank accounts, claiming ‘income tax default,’” click here.
