ISLAMABAD: Federal Board Revenue (FBR) will not involve in tax matter related to Chinese contractor of Neelum-Jhelum Hydropower Company (NJHPC).
According to the official sources, FBR has informed Inland Revenue Department of Azad Jammu and Kashmir to implement the decision of Supreme Court of AJK pertaining to Rs2 billion recovery from a Chinese contractor and FBR does not consider appropriate to give its opinion and therefore IRD-AJK should implement the decision of Supreme Court of AJK.
It is also important to mention here that Supreme Court of AJK has decided the case in favor of IRD AJK. Sources added that, earlier in 2016 when Inland Revenue Department AJ&K (IRD) issued notice to recover the impugned tax from NJHPC accounts, the Chinese contractor refused to pay and concern with the court in this regard.
The case was contested by the Chinese contractor in the court of AJK where finally they lost their appeal in Supreme Court AJK during 2017 against the decision of high court AJK.
Though all tax related matters are the responsibility of the Chinese contractor under the contract yet it was mutually decided that the matter may be referred to Federal Board Revenue for the final opinion on the points of views of both parties upon the Federal Ministry for Kashmir Affairs suggestion.
However, FBR informed Inland Revenue Department of AJK, that it will not involve in this matter and considers inappropriate to give its opinion as the matter is decided by apex court, sources added.
