New government regulations have led to an increase in the collection of income taxes in the country in the last few years. If a person or entity intentionally or unintentionally attempts to evade taxes, they will be held liable. By the actions taken by the Federal Board of Revenue (FBR) against Telenor, it is evident. As Telenor was unable to pay the income tax of approximately Rs3.5 billion, the board has frozen its bank accounts.
As a result of Telenor’s failure to pay previous tax obligations, the company owes the government of Pakistan this amount.
Telenor’s appeals have also been dismissed by all appellate bodies, as well as the Islamabad High Court, which ordered the company to pay government dues. The company, however, was unable to pay the liability as of March 28.
Sources said that the enforcement zone of large taxpayers’ office Islamabad initiated the recovery proceedings and attached the bank accounts of Telenor in all major banks in the country.
Additionally, FBR has also issued notices to various other third parties which are holding money or other assets on behalf of or payable to Telenor.
In addition, Telenor’s major default will be addressed by the FBR’s large taxpayers’ office with Telenor’s main office in Norway, through its International Taxes Wing, in an effort to bring Telenor into compliance with Pakistan’s domestic tax laws.
Sources also said that FBR is considering freezing and liquidating all financial assets of Telenor Pakistan to affect recovery of the defaulted tax amount, which comprises the company’s investments in mutual funds, treasury bills, investment bonds, sukuk and TDRs.
Sources further revealed that notices are also expected to be issued to Excise and Taxation department to attach all vehicles appearing in the name of Telenor, while CDA and Gulberg will be asked to attach all immovable properties of Telenor under the tax law until their default is paid in full to the government exchequer.
Telenor Pakistan Chief Corporate Affairs Officer Kamal Ahmed on a query of this scribe said 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.
“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.