FBR seals Jazz’s Islamabad office over non-payment of taxes

ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday sealed an office of the Pakistan Mobile Communication Limited (PMCL) due to non-payment of income tax amounting to Rs25.3 billion.

According to documents available with this scribe, the FBR’s Large Taxpayers’ Office-Islamabad has sealed PMCL’s F-8 office over non-payment of Rs22.03 billion income tax (Rs3.3 billion default surcharge) for the tax year 2018.

“PMCL is an existing taxpayer falling in the jurisdiction of this office [LTU Islamabad]. An income tax amount of Rs25,393,653,480 was outstanding against the said company, which has been refraining from clearing its liabilities deliberately, dishonestly and without any lawful excuse, thus causing huge loss to the national exchequer,” the documents read.

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“Therefore, on the basis of facts stated inter alia, I, Ahmad Shakeel Babar, Deputy  Commissioner Inland Revenue, in exercise of the powers vested in me in terms of section 138 of the Income Tax Ordinance, 2001 read with section 48 of the Sales Tax Act, 1990, order to seal the business premises of the defaulter till the payment of outstanding dues in full or withdrawal of this order.”

It was further stated that any non-compliance/defiance to this order shall be tantamount to obstruction in discharge of functions of an income tax authority and shall be punishable on conviction with a fine or imprisonment for a term not exceeding one year or both under section 196 of the Income Tax Ordinance, 2001.

As per documents, the LTU had earlier directed the PMCL CEO to clear the payable amount till Wednesday (today) and also produce necessary evidence to that effect at the FBR’s office. The PMCL was also warned that if the company does not comply in this regard, the tax department “could attach and sale the company’s moveable or immoveable property, and arrest and detain the concerned for a period not exceeding six months” as specified under clauses (a), (ca) and (d) of sub-section (I) of section 48 of the Sales Tax Act, 1990.

Meanwhile, Jazz spokesperson maintained that the company “is a law-abiding and responsible corporate citizen, with significant contribution to Pakistan’s economy over the past 25 years”.

“We have received a notice from FBR this afternoon. Jazz has made tax submissions based on legal interpretations of the tax owed. We will review and take measures under our legal obligations and will collaborate with all concerned institutions for an early resolution of this issue,” he added.

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  1. Today is 28th October, 2020 and the due tax liabilities is for the year ended 30-6-2018 so, where was the FBR during this period. If an ordinary business entity doesn’t pay even few thousand tax liability then immediately the FBR OFFICIALS take immediate action but here why FBR allowed to accumulate this big amount in billions when the NATIONAL KITTY IS IN DIRE NEED OF TAXES

    • There was a case pending in the court which jazz has recently lost as they were trying to prolong by avoiding to pay their tax liability and FBR now won it, so this action got necessarily initiated by the authorities. It is because of these big defaulters and corrupt companies in the guise of MNCs that the national exchequer is suffering and small tax payers instead come under pressure.

    • There are certain procedures that is followed according to every state departments rules and regulation, which most of the people on this platform doesn’t seem to understand. Instead of blaming FBR for taking a great step towards recovering tax amount from defaulters we all should appreciate there efforts. Would it be better if jazz would be left alone with this huge amount of tax not paid where all the users of jazz pay taxes everytime they use jazz service. Keep up the great work FBR. 👍

      • True. Bravo FBR. Job well done. Recover each and every penny from Jazz and all such corrupt persons (companies, etc.) & similar tax defaulters; big or small. Thats the mandate of the FBR.

        Jazz management has looted the money from the public to spend it lavishly on themselves and to contest all matters in courts and at every other forum. Then they delay those cases by wasting money but are not willing to pay the State of Pakistan. They have been robbing the public so shamelessly in their tariffs and phony packages. The CEO of Jazz is either pretentious & too naïve or he is mostly being kept in the dark by his stooges and junta of incompetence.

        Request to FBR, NAB, PTA and FIA: don’t leave Jazz and all these defaulters. Pakistan Zindabad.

      • Very rightly stated. On every mobile card load, these telecom companies deduct so much tax from the people who oftentimes struggle to get a Rs. 100 load in their mobile. Great step forward taken by FBR

  2. The officials of the LTU Islamabad should be held responsible for delay of recovery of taxes. It’s the official who are damaging the national kitty. The reason should be known for their hurry now.!!!

    • No, the FBR is not to be blamed. They only honoured the pending court decision which was eventually settled as jazz lost the case. It is companies as jazz who are looting the public and do not want to pay taxes and get away with their gimmicks. They had all the money to pay for publicity stunts to foreign actors to market their 4G, etc. but do not want to pay taxes and delay matters in courts, WHY. #Boycott Jazz. #Corruption @Jazz.

  3. The officials of the LTU Islamabad should be held responsible for delay of recovery of taxes. It’s the official who are damaging the national kitty. The reason should be known for their hurry now.!!!

    • The reason has been given above. Jazz is a full of incompetence and inefficieny. Corrupt, arrogant and inhumane thugs sitting at the helm of affairs. Wrong policy makers and bad decision takers. Worst advisors. Don’t blame the FBR. If govt. institutions genuinely do something for the betterment of the country, undue & negative criticism starts pouring in without knowing or understanding the real picture. Jazz and its management is in the habit of looting and prolonging things. They only know how to rob the public, fool the masses and bribe the concerned quarters with their gimmicks and publicity stunts. If jazz was really a responsible tax payer, they should have infact made the payment without going into any controversy. Especially in tough economic times like these where the country is facing challenges. Also, no need to blame the present govt. All the previous govt. (PPP & PML-N) were incompetent and corrupt to the core and it is because of those notorious & rogue setups that the current govt. is trying its best as a saviour to run the affairs of our beloved country smoothly – neutral views based on truthful facts.

    • Wow @mirza. What a mentality. Govts come and go. The tax is for the State. Do you think you can easily get away like this by such instigation and wrongfully encouraging non tax payers; defaulters. Not any more. Wait & watch.

  4. In Pakistan FBR is catching only those who are paying taxes regularly.

    Those who are not even registered are enjoying immunity.

  5. Anonymous, thanks for your replies which make all the sense. FBR is now operating as a much better organization and should continue to do so and improve revenue for Pakistan.


    • Collection of due taxes and outstanding arrears from defaulters and corrupt mafia like Jazz & others, is a must.

      How can you be so sure if the FBR would only be sparing something out of that recovery for the govt. construction of a temple, which is altogether a different topic and needs to be debated upon separately. Every citizen has the right to protest for any wrong that bothers him or her but, by no means compromising collection of tax payments for this Country. Yes, there should be a check & balance where the public money is being spent usefully.

      We have had enough of NROs, defaulters, looters, traitors, cheats, liars and corrupt family mafias in the shape of controlled & usurped democracies by their political factions. This should stop now and not be encouraged at all.

      What Jazz and other corporate mafias are doing in Pakistan is not acceptable and strict enforcement and legal action should be taken against them all.

      Spending the finances wisely by any govt. is and should be important. Let the state institutions run efficiently and the govt. function properly – full neutral point of view.

  7. That’s a first…. And an excellent step by the FBR. Everyone should be held accountable on the same scale.

    We are in Pakistan and we don’t have any precedent of FBR pulling such a move on a BIG company in the past. We can critique on the present gov all we want, but we have to keep everything in context. It’s not like we have been living like an advanced modern country with credible justice system and efficient government agencies. Yes, we have only been talking about all the good stuff and how Pakistan should be, but this is the first time in my life I am seeing actions being implemented on ground.

  8. This has already been faced by almost all INGOs each year. A flat rate to all expenses without considering actual facts.
    Hire Tax consultants. Secure stay against recovery and reconcile accounts with statements.

  9. Anonymous seems to be selling patriotism by making people fool here. Anonymous please can you also elaborate on the underlying issue here which resulted in this whole episode? If you share that with all the above who are commenting, I am sure it will help us all learn something new here.
    Let me shed some light here. Jazz created a wholly owned subsidiary to sell it’s towers. The transaction failed as the new PTI government was cash strapped (cash = dollars) and they didn’t get approval in time and the potential investors pulled out. However in the meantime FBR jumped into the picture and decided to demand 23 billion taxes from Jazz for selling towers to it’s wholly owned subsidiary. Keep in mind no real cash transfers took place and neither the company has any third party ownership. However the baboos found an easy target as multinationals are easy to malign and blackmail since their reputation matters alot to them unlike any one else locally who will come back at FBR and get the concerned blackmailers suffer.
    Now Mr Anonymous needs to stop selling patriotism as that’s an easy sell in Pakistan but results in discouraging one of the biggest investor and will only result in creating more failed institutions or shattering the confidence. The country is full of such examples.

    • Thank you for shedding some more light on this incident.
      All these details should have been covered in the article and not by a commentator. But this is again one side of the story (Jazz’s perspective). I don’t believe Annonymous is selling patriotism nor I think you are representing this multinational company. Ideally, the case should go to the legal justice system and a fair verdict should be reached. Unfortunately, that’s not the case here in Pakistan, and no one has fixed it in the last 70 years or so.
      What I know is that we are heading in a positive direction under the present regime, where cases like these would spur constructive debate. This would result in improvement in the system and Pakistani people would learn to differentiate better between right and wrong.

      • Thank you @ Eyes on the pr- eyes for your candidness about not selling anything. But, definitely Pak Citizen has something to sell for and on behalf of Jazz, its very apparent. Its unfortunate that such people as these come to the rescue of corrupt mafias and defaulters like Jazz, etc. A change with positiveness and patriotism needs to be spread as its required in the field of moral values, professionalism and ethics.

        Pakistani people are more well aware nowadays about the said differentiation as referred to above by your goodself.

    • @ Pak Citizen, people are not that fool as you think them to be. Nobody here has sold anything. I am a patriot and would continue to remain as one. Truth is always bitter, and you should have the courage accept it too like others above. Moreover, I am not here to teach you or someone anything new. Do your homework first instead of starting a blame game. Infact, I gave my own point of view based on hard core truth, research, experience and actual facts. In this era, the masses already know and people are mostly aware of what damage Jazz and the like corporate corrupt mafias have done and are upto. So, don’t give useless comments just for the sake of it. For your information, reputation matters to everyone. You cant go on judging everyone like this by living in your own world. Its quite clear that you have no idea how corporates like Jazz and similar so called giant tricky companies function in our homeland. They have nil patriotism for this country by contesting everything and deliberately avoid payment of taxes. Adding insult to the injury is their worst working environment which is more hostile than any of the existing sethiya companies. Yet, these corrupt investors (companies) are so arrogant in calling themselves as MNCs which is not even closely at par with the modern world as its all farce; an eye wash. They are devils incarnate to say the least. So, no thank you Mr. Pak Citizen, all that glitters is never gold. Our beloved country Pakistan & its patriotic nationals dont need your enlightenment or any favour and more examples of such “biggest” defaulters, cheats, liars, thieves and corrupt mafias in the name of investors. This country has endured a lot previously, therefore stop blaming the current PTI govt. for it. Enough is enough. Period. The order of the day across the board is to pay all your dues and taxes.

  10. if a court ordered jazz to pay taxes, these logical arguments against tax payments need tp have been given in court mr pak citizen
    I am sure Jazz hired the best lawers & strongly persued the matter. Since they lost the case, the logical argument didnt hold up in court & jazz need to pay up. Some towers were sold to 3rd parties as well so the issue is not as simple as forming a wholly owned subsidiary.

  11. One point I would like add is – state institution could take this move (and they can even go further) against Jazz because all the loss is on company side and the company can not blackmail the state, thanks to the competition and thanks to those who allowed this competition in the first place.

    Imagine if this was K-electric ? (the monopoly) – they would have resorted to load shedding in the name of reduced capacity due to FBR action, creating public pressure to force govt hands to intervene and provide relaxation. And due to public out-cry state had to bow down. This is one more reason why competition should be allowed in energy industry as well.

  12. FBR has started gunning. If mobilink jazz is not safe, no one else would. This event was just a jostle. A message to the masses, retailer to get registered for FBR Sales Tax POS Integration.

    That’s how NEWS are used to make rounds and manifest the gravity – Ad spend – 0. Neat move.

  13. The FBR’s move will also hurt JazzCash account holders who have money in their accounts, or what they can do to score their money. Was

  14. The FBR’s move will also JazzCash account holders disturb who have money in their accounts, or what they can do to save their money.

  15. Kiya is ka effect mobilink microfinance bank ko ho ya nai
    Will this effect mobilink microfinance bank or not please guide me ?????

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