Wednesday, May 22, 2024

FBR Freezes Bank Accounts of Telenor due to the Non-Payment of Income Tax

In the last couple of years, income tax collection has increased due to new governmental regulations. Any individual or institution would face legal consequences that try to avoid tax, voluntary or involuntary. And it is explicit that action was taken by the FBR (Federal Board of Revenue) against Telenor as the latter could not pay the income tax amounting to approximately Rs.3.5 billion. Hence, the board froze the bank accounts.

Since the company has failed to pay, now as the tax arrears, Telenor has to pay this amount to the national exchequer. It has also been discovered that Telenor’s requests have been excused by all re-appraising bodies and the Islamabad High Court, which has requested the organization to pay government duty. In any case, as of March 28, the organization wasn’t prepared to pay the responsibility.

Therefore, the recuperation activities were begun by the implementation zone of the vast citizens’ office in Islamabad, which held onto Telenor’s financial balances in all significant banks in Pakistan. FBR has likewise sent letters to various other outsiders holding cash or different resources for Telenor’s sake.

The Inland Revenue Department can recuperate a duty default from any outsider holding cash or resources of the defaulter, as per the Income Tax Act. The massive citizens’ office has begun such outsider recuperations. The FBR will notify all Telenor establishments the nation over for direct recovery of sums owed to Telenor.

Besides, the FBR’s massive citizens’ office is taking up the issue of Telenor’s significant default with its virtual office in Norway through its International Taxes Wing to urge Telenor to consent to Pakistan’s homegrown duty rules.

In addition, the sources involve that the FBR is thinking about suspending and exchanging all of Telenor Pakistan’s monetary resources, including shared reserves, depository bills, venture bonds, Sukuk, and TDRs recuperate the neglected expense sum.

Updated Statement:

Telenor Stated “We received a notice from Federal Board of Revenue for the recovery of a disputed tax demand. We had reservations on these alleged tax demands. Following an intra court appeal at Islamabad High Court, we have been granted a stay order.

“We would like to reiterate that as a law abiding and ethical corporate citizen, Telenor Pakistan takes a very responsible approach in discharging its due tax obligations in a timely manner; and we take immense pride in our position as one of the leading contributors to the national exchequer, having contributed over PKR 410B in direct and direct taxes since inception in 2005.”

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