Telenor Irked by Continued Mistreatment from FBR

Telenor Pakistan has expressed serious concern over repeated attachment of its bank accounts, selection of case for audit without random balloting, issuance of show cause notices, amendment of income tax assessments and multiple tax proceedings of Income Tax, Sales Tax and Federal Excise Duty initiated by the Federal Board of Revenue (FBR) against the telecom company.

In this regard, the cellular company has reportedly approached FBR on the issue of challenges being faced by the company with respect to tax assessments & audits.

In a company letter written to FBR, that’s available with ProPakisani, Telenor Pakistan said that its a compliant taxpayer and believes in due payment of both direct and indirect taxes.

“It is unclear that how its case has been selected for audit without the due process of computerized random balloting”, read the letter.

Telenor’s letter sent to FBR said that board has history of issuing the company show cause notices for almost all the tax years challenging the deductible expenses without evidence of default by the Company and requiring transaction and invoice level information to justify admissibility of routine operating and other expenses.

According to Telenor, it believed that full scope tax audit should be conducted through selection vide balloting. Telenor, in the letter, referred to the judgment dated February 6, 2016 passed by a five member bench of Appellate Tribunal Inland Revenue, Karachi.

Telenor also asked FBR to consider its decision on attachment of bank accounts, which has happened multiple times now, without allowing time to the Company to avail appropriate remedies available as per law.