The Federal Board of Revenue (FBR) has decided to initiate an audit of income and sales tax along with related financial affairs of Hascol Petroleum Limited and its top management.
According to a report by Business Recorder, the inspection or audit of the company’s tax affairs is expected to begin soon, according to reliable sources. The tax affairs of the company’s management and board of directors will also be audited by the relevant FBR field office.
According to report, the competent office of the tax machinery will serve audit notices to Hascol Petroleum Limited and its senior management. The scope of the audit will encompass taxation issues, Benami statutes, and anti-money laundering provisions. It is expected that the company, its board of directors, and relevant senior management officials will be audited for the tax period between 2018 and 2020.
Based on the audit’s findings, relevant actions against the company may be taken in due course.
It is pertinent to note that in 2021, the Senate Standing Committee on Finance was briefed by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) regarding the company’s financial reporting issues. The Committee was informed, at the time, that in comparison to the tax year 2018, Hascol’s liabilities in 2019 climbed from Rs. 24 billion to Rs. 44 billion.