KARACHI: The Federal Board of Revenue (FBR) has suspended sales tax registration of Shell Pakistan for tax evasion of Rs3 billion.
The Large Taxpayer Unit, Karachi issued the order to suspend registration of the company. The oil company has reportedly concealed the stock of lubricating oil in returns filed during the period of Dec-2016 to Feb-2018, which comes to the meaning of tax fraud’.
“It is noteworthy that the Registered Person continued the fraudulent practice till last return filed for the month of March 2018, in order to safe guard the government revenue, this office immediately order for suspension of Sales Tax Registration of M/s. Shell Pakistan Limited under Section 21(2) of Sales Tax Act, 1990 read with Rule 12 (a) (i) of the Sales Tax Rules 2006 read with SRO SSS (1)/2006 dated 05-06-2006,” reads the notification.
When contacted to Shell authorities they stated: “Shell Pakistan Limited (SPL) had received a notification from the FBR requiring the company to explain a tax discrepancy, SPL was allowed by the FBR to respond by 30 April 2018. The company had earlier clarified that the relevant amount of tax had been paid in full therefore there was no shortfall in the payment of tax. However, FBR proceeded with the suspension of SPL’s GST license before the stipulated time given to the company to respond. The suspension of registration was hence not justified, SPL therefore took the matter to the honorable High Court of Sindh which has suspended the directive of FBR and ordered that it be reinstated with immediate effect. SPL complies with all statutory requirements of the country, and strives to conduct its business in accordance with the applicable laws of Pakistan. SPL will continue to work closely with the tax authorities to resolve this issue.”
