ISLAMABAD: The Federal Board of Revenue has issued a tax demand of Rs19 billion against United Bank Limited (UBL) covering income tax and federal excise duty liabilities for past years up to tax year 2025, according to disclosures made in the bank’s financial statements.
Documents reveal that the income tax portion of the demand amounts to Rs16.65 billion. United Bank Limited has filed its income tax returns up to tax year 2025, corresponding to the accounting year ended December 31, 2024.
These returns are treated as deemed assessments under Section 120 of the Income Tax Ordinance, 2001.
The Federal Board of Revenue issued amended assessment orders for tax years 2003 to 2025, raising additional tax demands mainly due to disallowances of provisions made prior to the Seventh Schedule.
The revised tax demand now stands at Rs16.65 billion, compared with Rs16.12 billion reported in 2024. In response, United Bank Limited has filed appeals before various appellate forums challenging the amended assessments.
The bank stated that in cases where relief was granted by appellate authorities, the Federal Board of Revenue has filed further appeals before higher forums. Similarly, the bank has also challenged decisions where relief was denied. Management of United Bank Limited expressed confidence that the pending cases will ultimately be resolved in its favor.
UBL also confirmed that income tax returns for its branches in Azad Kashmir and Gilgit-Baltistan have been filed up to tax year 2025 under Section 120(1) read with Section 114 of the Income Tax Ordinance, 2001. These filings are also treated as deemed assessment orders in accordance with a May 2005 agreement with the Azad Kashmir Council.
Apart from income tax matters, the Federal Board of Revenue conducted monitoring related to Federal Excise Duty, Sales Tax, and Withholding Taxes for the period from 2005 to 2019.
This exercise resulted in additional tax demands and adjustments amounting to Rs2.63 billion, which the bank has also contested through appeals.
United Bank Limited stated that it remains committed to full compliance with Pakistani tax laws while continuing to pursue legal remedies for disputed tax claims. The bank maintains that it has a strong case and expects favorable outcomes in the ongoing litigation.
The case reflects the continued scrutiny of major financial institutions by the Federal Board of Revenue as part of broader efforts to enforce tax compliance and resolve long-standing tax disputes in Pakistan’s banking sector.
