Tax cases worth Rs225bn still pending
http://www.thenews.com.pk/Todays-News-3-157033-Tax-cases-worth-Rs225bn-still-pending

By Mehtab Haider
Wednesday, January 30, 2013
From Print Edition

ISLAMABAD: The biggest case of outstanding tax involving Rs129 billion against Tehrik-e-Jadid Anjuman Ahamdia Chanab Nagar is lying before the Lahore High Court, while total stuck-up amount of the Federal Board of Revenue (FBR) in 351 cases stood at Rs225 billion in different courts including the Supreme Court, high courts and tribunals of the country, according to the documents available with The News.

There are nine cases involving revenues of Rs3.239 billion pending before the Supreme Court of Pakistan. There are 226 cases involving Rs178.871 billion lying before high courts where the courts granted stay orders.

Keeping in view massive revenue shortfall in the current fiscal year, top Federal Board of Revenue (FBR) high-ups have urged to the Chief Justice of Pakistan Iftikhar Mohammad Chaudhry to take suo moto action for resolving the pending cases of billions of rupees. There are 99 cases pending before the Appellate Tribunal of Inland Revenues and Customs worth Rs23.648 billion, 24 cases before Commissioner IR Appeals worth Rs19.406 billion, and 2 cases before session’s court worth Rs45.008 million.

The details of tax cases show that regional taxpayer office (RTO) Faisalabad created a demand of Rs64.639 billion against Sadar Anjuman Ahamdia Chanab Nagar through an order under 125 (5A) of Income Tax Ordinance. The stay has been granted by the Lahore High Court vide a writ petition on 29-5-2012. In another case against Tehrik-e-Jadid Anjuman Ahamdia Chenab Nagr, the RTO Faisalabad created a demand of Rs64.628 billion and the LHC granted stay order vide writ petition on 29-5-2012.

The RTO Faisalabad did not agree with the exemption claims of the said amount by both the bodies. Tax officials said the amount was too huge to be waived.

The FBR also viewed that in most of the cases constitutional limit of stay in terms of 6 months has already been expired. In the Supreme Court of Pakistan, few cases related to taxes include Lucky Cement involving tax revenues of Rs942.11 million, Malik Muhammad Saeed Rs1.765 million, Sahazad Ghee Mills Rs1199 million, Al Catel Pvt. Ltd. Rs17 million and Bailour Industries Rs48.936 million.

In high courts, there are total 226 cases as in case of Naubahar Bottling Co Gujranwala with revenues involvement of Rs856 million where stay is granted by the LHC. The LHC granted stay order to Gujranawala Electric Power Company with tax involvement of Rs223 million, Rs449 million and Rs209 million. The high courts granted stay order to certain bigger cases including Engro Fertilizer involving tax amount of Rs579 million, Dalda Foods Limited Rs193 million, Occidental Petroleum Rs813 million and Rs326 million, Oxford University Press Rs210 million and Rs208 million, Pakistan Petroleum Limited Rs335 million, Rs320 million, Rs241 million, Rs155 million and Rs19 million, PKP Kirthar 2 BV Rs210 million, Rs130 million and Rs17 million, KESC Rs125 million and Rs108 million, PSO Rs682 million, Standard Chartered Bank Rs515 million, Wak Limited Rs441 million, Abdullah Sugar Mills Rs102 million, JDW Sugar Milla Rs99 million, Punjab Employees Social Security Institute Rs1238 million, Tribal Electric Supply Company Rs23 billion, PESCO (Peshawar Electric Power Company) Rs1630 million, Huawei Tech Pak Rs1022 million, IESCO Rs1680 million, Rs2141 million and Rs2454 million.

In custom duty collection, details of some biggest cases showed that the high courts granted stay order to Shell Pakistan for Rs28 million outstanding taxes, PSO Rs104 million and Rs43 million, Zafar Brothers Rs54 million, DG Khan Cement Rs183 million, Hino Pak Motors Rs64 million, ZTE Plot No.360 Islamabad Rs149 million, Ibrahim Fibres Rs67 million and Gam Corporation Pvt. Ltd. Rs111 million.

Some biggest cases where stay is granted by Appellate Tribunal IR are related to Faisalabad Electric Supply Company worth Rs12.828 billon, Chenab Board Rs26 million, B.P Pakistan Badin Rs270 million, Rs84 million, ICI Pakistan Rs972 million, International General Insurance Co Ltd Rs2461 million, KESC Rs493 million and Rs222 million, Fauji Oil Terminal in different cases worth Rs58 million, Rs45 million, Rs45 million, Rs82 million and Rs74 million, Faisal Asset Management Rs60 million.

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