Jazz deposits Rs 5 billion Tax to FBR
Our Correspondent
Jazz Pakistan, a telecom company, has deposited Rs 5 billion tax to the Federal Board of Revenue (FBR).
It deposited the amount in the wake of orders of the Islamabad High Court. The court had directed orders to the Jazz management to deposit Rs 5 billion tax.
https://newztodays.com/jazz-pakistan-illegally-transfers-rs-34b-dividends-secp-orders-recovery-from-shareholders/
The telecom giant had defaulted to Rs 25 billion tax. Following this, the Federal Board of Revenue (FBR) had issued notices to deposit Rs 25 billion. The FBR authorities had also sealed the head office of the telecom company.
Later, it filed a case in Islamabad High Court (IHC) against the Federal Board of Revenue (FBR), praying for a stay order.
However, the court directed to deposit Rs 5 billion tax. The Company defaulted to Rs 25 billion, which included the principal amount of tax and default surcharge.
The company had agreed to pay Rs 5 billion tax to FBR. In its order, the court directed the company to deposit within three days.
However, court suspended the notices issued what the Large Taxpayer Office (LTO) Islamabad had issued under section 140 of the Income Tax Ordinance 2001.
The court had granted the ad-interim relief till the next hearing scheduled on December 2, 2020.
Earlier, the company had offered LTO to pay Rs 5 billion. It had also offered to pay the remaining amount in monthly installment by March 2020. However, LTO had rejected this offer.
Spokesperson Jazz said that company is contesting FBR’s Rs 25 billion disputed tax demand before the Honorable Islamabad High Court.
As per the court’s latest order, the stay has been granted against FBR notices to Jazz subject to Rs 5 billion (to be deposited within 3 days of the order).
READ Jazz defaults to Rs 25 billion Tax.
He said that Jazz would continue to contest disputed tax demand and will follow the legal process. The country is a leading digital company serving 63 million customers. It is also a leading 4G operator – the largest internet and broadband service provider.
Jazz is also working to extend digital infrastructure and enhancing connectivity. It is investing in digital skills and literacy and promoting entrepreneurship and innovation.
Earlier, the Federal Board of Revenue (FBR) had issued a notification to the Chief Executive Officer (CEO) PMCL.FBR had warned to face arrest in case of a payment default.
Notice to CEO
Deputy Commissioner Inland Revenue FBR Large Taxpayer Office Islamabad had served a notice on CEO Jazz. It said that the sum of Rs. 25,393,653,480 is due to him (CEO) on account of tax. Therefore, he had given a deadline of October 28, 2020, to pay arrears. LTO had further said to produce the necessary evidence of payment.
The tax authority had further warned that it would start proceedings to recover the amount. Furthermore, LTO had said that it could take some initiatives to recover the money. The measures, it warned, included attachment and sale of moveable or immoveable property.
LTO said that FBR would appoint a receiver to manage the moveable or immoveable property due to the failure. It further warned of arrest and detention in person for a period of six months. LTO also barred from selling, mortgage, charge, issue, or otherwise deal with any property without permission in writing.
