ISLAMABAD: The Federal Board of Revenue (FBR) has started investigation against the K-Electric following the charges of Rs 112 billion tax evasion.
According to a letter written by Transparency International Pakistan (TIP) to the chairman of the parliamentary panel, the latest tax return submitted to the FBR by K-Electric reveals that in the income tax for 2013-14, sale is stated to be Rs 112,165,872,000 but according to the annual report revenue for 2013 it was Rs 189,999,000,000.
TIP letter further stated that there is a shortfall of Rs 76,833,128,000 in actual revenue and the reported revenue in the tax returns of 2013. The committee has also been informed that 16 percent GST on the income that was not reported amounts to Rs 12,293,300,480 and that it has not been paid to FBR. “Income tax evasion of Rs 76,833,128,000 if taken at the rate of 35 percent, its total impact will be Rs 26, 891,594,800,” Transparency International Pakistan claimed. More than 40 percent registered industrial consumers of K-Electric have demanded input refunds of sales tax whereas no sales tax has been deposited in FBR on their behalf by K-Electric.
Transparency International Pakistan also cited a complainant as alleging that the revenue shortfall between declared in their tax returns and reported in annual reports for 2009, 2011, 2012 and 2013 is Rs 213 billion and the GST and income tax evasion comes to Rs 111 billion. Chairman National Accountability Bureau (NAB) has also been requested to probe the matter and take action under NAO to recover the plundered amount if the allegations are proved.
