KARACHI: The Federal Board of Revenue (FBR) has initiated the process of blacklisting two major property builders for violating provisions of Sales Tax Act, 1990, sources said.
Medium Tax Office (MTO), Karachi, the revenue arm of the FBR, issued show cause notices to M/s Rufi Builders and M/s Usama Builders on failure to file sales tax returns for five years (2015 to 2020).
The tax office has already suspended the taxpayers and directed the property builders to explain by March 15, 2021 before initiation of proceedings for blacklisting of tax registration.
According to notices issued to the builders, the tax office stated that it had examined the tax profiles of builders for the tax years 2015 to 2020, which had shown abnormal behavior i.e., low value-addition/continue carry forward and nominal or nil net tax payment as compared to volume and purchases.
This has caused loss of revenue to national exchequer, the tax office said, adding that apparently the taxpayers were not genuine business concerns.
The MTO Karachi said the taxpayers were asked to explain their position through notices dated February 16, 2021 prior suspension. The taxpayers were asked to reply by February 23, 2021, but they failed to make any compliance and requested for time extension. Therefore, their sales tax registrations were suspended.
The online record by Saturday morning at FBR online portal was also showing suspended status of both the taxpayers.
The tax office said both the taxpayers had been asked to appear on March 15, 2021 before concerned authorities and explain the violation.
The tax office said that in case of unsatisfactory or no response the authority would proceed to for blacklisting these taxpayers.
In this picture, the PCJCCI logo can be seen on September 1, 2022. — Facebook/Pakistan China Joint Chamber of...
A representational image of a US flag pictured alongside a street sign reading "Wall Street" in the New York city. —...
A security guard sits in front of a wall with signs and slogans at the operation building at the Pakistan Steel Mills ...
A worker cleans the entrance to the headquarters of Bank Indonesia, the nation's central bank, in Jakarta, Indonesia....
The MCB's logo is seen on a wall outside the bank's head office. — MCB websiteKARACHI: MCB Bank Limited on...
A foreign currency dealer counts US dollars at a shop in Karachi. — AFP/FileKARACHI: The rupee lost ground against...