KARACHI: The Apex Court has entitled Hub Power Company (Hubco) to a Rs1.9 billion refund after setting aside Federal Board of Revenue’s (FBR) tax demand against the company on the issuance of shares to the sponsors.
The country’s top revenue authority, in 1998, made assessments that the Hubco did not pay withhold tax at the time of issuance of shares to sponsors against project development costs incurred by them. The company filed apples before the Commissioner of the Income Tax and thereafter with the Income Tax Appellate Tribunal, which were decided against the company.
In 2012, the Hubco filed appeal against the decision of the Tribunal before the Islamabad High Court, which were also decided against the company. The Company filed further appeals before the Supreme Court of Pakistan. On April 17, 2014, the Supreme Court, while overturning the High Court decision, decided the case in favour of the Company. Against the decision of the Supreme Court, FBR filed review petitions which were dismissed by the Supreme Court.
