Mobilink’s Accounts Attached Second Time in Two Years

by Yasir Ameen

Mobilink’s with its massive expansion plans in business countrywide seems reluctant to deposit its due taxes to the country as its accounts were attached second consecutive time in two years by the authority for recovery  of outstanding revenues under law.

According to the Federal Board of Revenue (FBR) official statement, Mobilink owed Rs. 8.6 billion to the exchequer on account of mis-declaration of Sales Tax and FED.

The Income Tax Appellate Tribunal recently upheld the decision of LTU, Islamabad and confirmed the payable tax amount of 8.6 billion rupees after Mobilink filed a petition and took stay order.

FBR said that LTU Islamabad had attached or sealed the banks accounts of Mobilink to recover a colossal amount of revenues subsequently the cellular operators showed it reluctance to deposit tax to national kitty after several show-cause notices sent by tax authority.

On receiving the decision of the Tribunal, Syed Ijaz Hussain, Chief Commissioner, LTU,Islamabadformed various teams of officers headed by Commissioner, LTU, Malik Muhammad Ashraf to recover the amount from the company through attachment of Bank accounts, blocking of imports and recovery through suppliers of the company, which include other telecom companies as well as the Pakistan Telecommunication Authority.

As of today, all Bank Accounts of the company have been attached and imports blocked accordingly. Further action will be taken by the next working day, FBR statement said.

In 2011, FBR’s has taken same action against Mobilink and froze its all account to recover its outstanding tax amount of Rs 100 million

The LTU detected miss-reporting of the withholding tax deducted by Mobilink from their customers on the recharge of prepaid cards and payment of postpaid bills. It sent several show-cause notices to cellular operators, demanding to deposit its outstanding dues within couple of months, however, the cellular operator became stubborn to follow orders of tax authority, responding that it reported  correctly the amount of tax to FBR and paid all amount deducted from customers.

The tax departments informed Mobilink about the massive tax default as a result of under or miss reporting and ordered to pay it for avoiding stern action but the cellular operator was stick to its stance.

LTU Islamabad used its legal rights to have sealed the accounts of Mobilink at HSBC Islamabad branch and recovered Rs 100 million taxes within 24 hours.

The tax department has restored the account of Mobilink at HSBC after recovery of outstanding due taxes.

This is the second case of the history cellular sector of the country, which raised eyebrows of many taxpayers of corporate sector as a matter of fact the Mobilink has been the oldest among all players in the market and it  knows the rules and all procedures of the tax laws of the land.

FBR Notification can be viewed on the link http://fbr.gov.pk/ShowArticle.aspx?Actionid=715

Mobilink Stance

Mobilink has clarified the media that the FBR’s ruling on Sales Tax and FED is still sub-judice.

The cellular claimed that it had always remained at the forefront of making its due contribution to the nation’s exchequer. In 2011 alone, Mobilink paid taxes amounting to Rs 34billion.

Over its 17 year history of operations, Mobilink has remained committed to Pakistan, and respectful of all laws, including tax laws, which govern over Pakistan.