Daily Times

ISLAMABAD: The Federal Board of Revenue (FBR) has declared SAINDAK and Sindh Engineering Limited (SEL) defaulters in the payment of income tax.

Sources said the FBR had sent several notices to SAINDAK and SEL for the payment of taxes but both the institutions had failed to make any payment on this count.

The decision has been taken to contact the parent ministry of petroleum and natural resources for the recovery of income tax from SAINDAK and the ministry of industries and production for the recovery of income tax from SEL.

TheFBR has requested the finance ministry to ensure the recovery of tax through the respective ministries.

SAINDAK told Daily Times that an issue of Rs 25 billion was running with the federal government under Huqooq-e- Balochistan and it had stopped the payment of tax for this reason.

The finance ministry has sent letters to the respective ministries for recovery of income tax amounting to Rs 79 million from these two institutions. It is laid down in categorical terms in the letter that the FBR would be entitled under Section 140 of the Income Tax Ordinance 2001 to withdraw the tax amount directly from the bank accounts of these two institutions if the tax was not paid by July 15.

The finance ministry has also written a letter to the ministry of industries and production stating that if the tax was not paid within the stipulated period then it would be deducted from their bank accounts directly.

The income tax amounting to Rs 55.8 million is payable by SEL and it has failed to pay the tax despite repeated reminders. The FBR had set June, 30, 2016 as the last deadline for payment of the tax.

The FBR has decided to contact the finance ministry authorities on the non payment of tax so that the respective ministries could be taken on board for recovery of the tax from SAINDAK and SEL.

The finance ministry has sent formal letters to the ministry of industries and production and the ministry of petroleum and natural resources for the recovery of tax from these two institutions and made recommendations for ensuring the recovery of tax before July, 15, 2016 otherwise the FBR would withdraw the tax account directly from the bank accounts of these two institutions by exercising its legal powers. The FBR has withdrawn tax amount directly from the bank accounts of several private institutions, semi government institutions and government departments after they became defaulters on the payment of tax. In this case however , the ministries have been contacted for the recovery of tax from SANDAK and SEL.