Karachi, March 28, 2024 – In a historic milestone for the Federal Board of Revenue (FBR), the Large Taxpayers Office (LTO) Karachi made biggest-ever tax recovery, amounting to approximately Rs 13 billion, from a taxpayer for defaulting on advance tax payments.
This significant achievement underscores the effectiveness of enforcement measures in bolstering revenue collection and ensuring compliance with tax regulations.
The remarkable recovery, totaling Rs 12.92 billion, was made by Zone-I of LTO Karachi, the FBR’s largest revenue collection arm, from the Civil Aviation Authority (CAA) of Pakistan. Sources within the FBR confirmed that the recovery was executed through the attachment of bank accounts held at the National Bank of Pakistan (NBP).
According to FBR sources, the defaulted amount had accumulated due to the non-payment of advance tax by the CAA. Despite the company’s contention that it was exempt from paying advance tax, the FBR rejected this stance, prompting the LTO Karachi to take decisive action under Section 140 of the Income Tax Ordinance, 2001.
In pursuit of the outstanding dues, the tax office attached approximately 11 bank accounts belonging to the company. In a formal communication addressed to the manager of operations at NBP, the LTO Karachi notified that an amount of Rs 12.92 billion was owed by the taxpayer, emphasizing the obligation of the bank to remit the funds to the government treasury in accordance with legal provisions.
Sources familiar with the matter confirmed that the recovery process has been successfully completed, marking a significant milestone in the annals of the FBR’s history. The magnitude of this tax recovery in a single case highlights the effectiveness of enforcement mechanisms in addressing non-compliance and upholding fiscal discipline.
The successful recovery not only strengthens the FBR’s revenue base but also sends a clear message regarding the importance of tax compliance for all entities operating within Pakistan’s economic landscape. By holding defaulters accountable and ensuring the equitable contribution to national development, the FBR reaffirms its commitment to fostering a culture of tax transparency and accountability.
This unprecedented achievement by the LTO Karachi underscores the dedication and diligence of tax authorities in safeguarding the integrity of the tax system and promoting a level playing field for all taxpayers. As Pakistan continues its journey towards economic prosperity and sustainable development, robust revenue mobilization efforts remain paramount, with the FBR playing a pivotal role in driving fiscal stability and growth.
