KARACHI: The Federal Board of Revenue (FBR) has transferred the cases of several major multinational companies (MNCs) to the Large Taxpayers Office (LTO) Karachi to strengthen corporate tax oversight and ensure compliance with domestic tax laws.
According to sources, the cases of these MNCs were already under assessment at the office, and the newly transferred sister concerns and associated funds will now also fall under the jurisdiction of LTO Karachi.
This strategic move aims to consolidate tax scrutiny for major corporations, improve transparency, and ensure that all related entities are thoroughly audited for corporate tax compliance.
The FBR has specifically moved the jurisdiction of 16 cases from the Corporate Tax Office (CTO) Karachi to LTO Karachi. These include Shell Pakistan’s pension, provident, and gratuity funds, Unilever Pakistan’s pension and employee benefit funds, Union Pakistan Provident Fund, and Philip Morris Pakistan’s contributory and gratuity funds.
The move ensures that both parent companies and their associated employee benefit schemes are monitored under a single authority, reducing administrative gaps and enhancing the efficiency of tax assessments.
Industry analysts say the transfer is part of FBR’s broader efforts to strengthen corporate tax collection, improve compliance among high-revenue taxpayers, and prevent underreporting of taxable income. LTO Karachi is expected to conduct more detailed audits and apply international best practices in corporate tax assessment.
The decision is seen as a proactive step by the FBR to formalize MNC operations in Pakistan, safeguard government revenue, and maintain transparency in taxation of multinational enterprises operating in the country.
By bringing all related entities under LTO Karachi, the FBR aims to ensure a comprehensive review of corporate tax obligations, helping secure consistent and equitable revenue collection from high-value taxpayers.
