ISLAMABAD: Federal Board of Revenue (FBR) Official Spokesman and IR-Policy Member Shahid Hussain Asad has said that there have been some reports in the press that the FBR is getting advance from banks and paying a 15 percent markup on it.
He said this is a baseless allegation and the FBR is not involved in any such activity.
He further said that the FBR has not taken any advance from the banks.
“Compensation is being paid in only those cases where the appellate tribunal/high court/Supreme Court have set aside the demand created and collected by the FBR in the past.
Many of these cases have not attained finality. However, compensation is being paid as per the Income Tax Ordinance, 2001, he said.
He further said that these cases pertain to the period between 1991 and 2012. “Compensation paid is subject to 35% income tax. Thus the effective rate is 9.75% and not 15%.”
He revealed that for the future, the FBR has decided that in such cases, if refund is created as a result of decision of an appellate authority, the commissioner must immediately file an application seeking a stay order along with the appeal against the appellate order.
If the stay order is not granted or the order has attained finality, the amount must be settled within three months of the order. This will ensure that such a problem does not arise in the future.
