News
Sunday, July 08, 2012
NAB saves Rs 47 billion for national exchequer* Five cellular companies found involved in tax evasion in cahoots with FBR officials
Staff Report
ISLAMABAD: The National Accountability Bureau (NAB) on Saturday claimed that it has unearthed tax evasion of Rs 47 billion being committed by five cellular companies with the abetment of senior tax officials since 2007.
In a media briefing, NAB Information Officer Qazi Muhammad Irfan claimed that five cellular companies had been involved in massive tax evasion during the last five years on inter-connect charges, while the companies admitted before the chief commissioner of the Large Tax Payers Unit that they were supposed to deposit this tax. Despite this confession, the Federal Bureau of Revenue (FBR) bosses exempted them from the payment of this tax.
After preliminary enquiry, a four-point agreement has been reached between NAB and FBR that no waiver whatsoever will be granted to cellular companies on grounds of interconnect charges. The FBR chairman will depute a lawyer to get the stay lifted from court by producing evidence, which has been pointed by NAB. The FBR chairman will approach NAB where the necessity of recovery arises. The FBR chairman expressed his commitment to work closely with NAB to safeguard the national exchequer.
After recovery of evaded tax from telecom companies, NAB will determine the role of the FBR officials in the tax evasion case. NAB has right to proceed against FBR under National Accountability Ordinance, he said.
Irfan said that Rs 47 billion losses had been caused to the national exchequer by five cellular companies, which are National Telecommunication Corporation (NTC), Pakistan Telecom Mobile Company Ltd (PTML), Telenor, Pakistan Mobile Communication Ltd, (PMCL) and Warid. On July 4, the NAB chairman took suo motu notice to recover Rs 47 billion and asked the FBR chairman to appear in person to explain the details about defaulted amount. The FBR chairman was also directed not to take any further action in terms of waiver of tax worth Rs 47 billion to cellular companies. The NAB chairman has constituted a fact-finding committee comprising NAB director general (operations), director (special operations) and a senior baking officer to probe the matter.
Earlier, an FBR team appeared before the NAB inquiry team and apprised it on the issue, but their explanation was found to be unsatisfactory and they were restrained from signing waiver notifications. It was reported to the NAB authorities that the FBR staff was trying to issue subject waiver in spite of preventive instruction from NAB.
The NAB chairman ordered an enforcement to find out why tax evasion had continued for the last four years. He also emphasised that the FBR chairman should himself explain the viewpoint of the FBR. To avoid the issue of warrants, the FBR team was asked to inform the FBR chairman about NAB chairman’s directions to report in person.
Courtesy www.dailytimes.com.pk