Federal Board of Revenue, authority responsible for taxing businesses and individuals in Pakistan, has announced that it is devising a strategy to tax Google’s income from Pakistan.
A status update posted on FBR’s official website said that all Adsense payments can be taxed, without clarifying anything about bringing advertisers under the tax head.
ProPakistani had reported in the morning that FBR is considering to tax Google, after it heard that its Indian counterparts had fined the Google with 760 million Indian rupees or USD 13.8 million for evading taxes and misleading Indian authorities by under-reporting its revenues.
FBR admitted that hurdle in taxing Google is its Permanent Establishment (as per Income Tax Ordinance, 2001), which could give FBR an ability to bring Google under Pakistani tax laws.
However, it appears that adsense publishers won’t be spared, a relatively easier target for FBR to collect money, which will be insignificant in value.
Adsense publishers are of the opinion that authorities are being biased here by taxing publishers only, while advertisers and Google itself is apparently spared by FBR.