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Day: June 27, 2021

  • SEC Pakistan imposes monetary penalty of Rs4bn on B4U Group for raising illegal deposits

    SEC Pakistan imposes monetary penalty of Rs4bn on B4U Group for raising illegal deposits

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has imposed a heavy penalty of Rs4 billion on B4U group for raising deposits illegally and operating pyramid schemes.

    In a tweet message on Sunday, the SECP said that it had concluded adjudication proceedings against B4U Group and its sponsors for raising illegal deposits from the public and operating pyramid schemes, in violation of the Companies Act, 2017.

    The B4U Group comprises of 18 companies incorporated under the Act, as well as five unincorporated business setups. All the 18 companies were registered during the last two years. The main sponsor of B4U Group is Saif-ur-Rehman, along with his immediate family member.

    The SEC Pakistan, after completing the due process of law, has disqualified the sponsors of B4U Group becoming a director of any company for a period of five years and has also imposed a penalty of Rs100 million on each of its sponsors. Further, the sponsors shall not be allowed to incorporate any new company under the Act.

    “In addition the SECP has granted sanction for winding up of all 18 companies of B4U Group and imposed a penalty of Rs200 million on each company. Aggregate penalties amounting to Rs4 billion have been imposed on B4U Group.”

  • Tax officials given arrest powers on concealment above Rs200 million; changes made to Finance Bill 2021

    Tax officials given arrest powers on concealment above Rs200 million; changes made to Finance Bill 2021

    ISLAMABAD: The government has reviewed the proposal related to power of tax officials to arrest persons under criminal proceedings for concealment of income.

    The power to make arrest may be restricted to concealment of Rs200 million and above, sources in Federal Board of Revenue (FBR) said.

    Through Finance Bill 2021, it is proposed to substitute the Section 203 which at present deals with procedure of appeal against the order of a Special Judge.

    The Bill proposed to substitute section 203A which provides that an authorized officer may arrest a person as per the provisions of the Code of Criminal Procedure, 1898 on the basis of material evidence and he has a reason to believe that person has committed an offence of concealment of income or an offence warranting prosecution.

    Further, where a person commits an offence, the Chief Commissioner with the prior approval of the Board either before or after the institution of any proceedings for recovery of tax, compound the offence if such person pays the tax due along with such default surcharge and penalty.

    Accordingly, existing section 202 is proposed to be deleted from the statute.

    If the person suspected of committing an offence or concealment is a company, every director or officer of that company whom the authorized officer has reason to believe that he is personally responsible for actions of the company contributing to offence or concealment of income or any offence, shall be liable to arrest.

    Provided that any arrest shall not absolve the company from the liabilities of payment of tax, default surcharge and penalty.

    The sources said that the after this proposal the business community strongly reacted and termed it immense discretionary powers to the tax authorities.

    The government realizing the sensitivity of the situation made changes it its actual proposal and now the power of tax officials has be restricted in those cases where concealment is abve Rs200 million.

    The government will present the Finance Bill 2021 after making certain changes before the Parliament for approval.

  • FBR announces reduction in sales tax rates on petroleum products

    FBR announces reduction in sales tax rates on petroleum products

    ISLAMABAD: Federal Board of Revenue (FBR) has announced reduction in sales tax rates on supply of petroleum products in order to ensure availability of fuel at lower rates.

    The FBR issued SRO 807(I)/2021 dated June 26, 2021 for notifying the reduction in sales tax on petroleum products.

    According to the SRO the sales tax rate on kerosene oil has been reduced to 6.7 per cent from 9.15 per cent. Similarly, sales tax on light diesel oil has been reduced to 0.2 percent from 2.74 per cent.

    However, the sales tax rates on petrol and high diesel oil has been kept unchanged at 17 per cent.

    The government on June 15, 2021 announced increase in prices of petroleum products for next fortnight, which are as follows: MS (Petrol) has been increased by Rs2.13 from Rs108.56 to Rs110.69 per liter, High Speed Diesel was increased by Rs1.79 from Rs110.76 to Rs112.55 per liter, Kerosene (SKO) was increased by Rs1.89 from Rs80.00 to Rs81.89 per liter and Light Diesel Oil was increased by Rs2.03 from Rs77.65 to Rs79.68 per liter.

    FBR sources said that the sales tax rate has been reduced because the government had not passed on the actual increase in petroleum products prices to the general public.