LAHORE: The Federal Board of Revenue (FBR) freezes the bank accounts of Telenor on account of its income tax default amounting to approximately Rs3.5 billion.
It has been learnt from credible sources that FBR has initiated a major recovery action against Telenor Pakistan (Pvt) Ltd on account of its income tax default amounting to approximately Rs3.5 billion.
This amount is payable by Telenor towards the government of Pakistan as arrears of tax liability from previous years, which Telenor has failed to pay.
It has also been learnt that all appellate fora as well as Islamabad High Court has dismissed the appeals of Telenor and directed the company to pay the government dues. However the Norway-based telecom company as on March 28, 2022 was unwilling to settle its liability and pay the due amount to the national exchequer.
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.
It is pertinent to mention that under the Income Tax law, a tax default can be recovered by the Inland Revenue department from any third party holding money or assets in favor of the defaulter.
Sources further revealed that such third party recoveries have been initiated by the large taxpayers’ office and FBR is soon going to send notices to all franchises of Telenor across the country for direct recovery of amounts payable by them in favor of Telenor.
Moreover, FBR’s large taxpayers’ office is also taking up the issue of major default committed by Telenor with its head office located in Norway through its International Taxes Wing, to enforce compliance by Telenor towards the domestic tax laws of Pakistan.
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 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.
