Karachi, August 6, 2024 — The Large Taxpayers Office (LTO) Karachi, the Federal Board of Revenue’s (FBR) largest tax collection unit, has achieved a significant victory by attaching bank accounts for recovery of Rs 575 million from a renowned builder.
The attachment of the builder’s bank account for the recovery, highlighting the LTO Karachi’s commitment to enforcing tax compliance.
The builder, known for selling a prominent property in Karachi, had failed to pay the applicable taxes on the profit from the sale. This omission led to an audit by the LTO Karachi, which scrutinized the taxpayer’s records for the fiscal year 2021. Following the audit, a demand notice was issued to the builder, requiring payment of the outstanding tax amount.
Rather than complying with the notice, the builder sought relief through the Appellate Tribunal, which granted a stay on the payment. However, this stay expired on August 4, 2024, with no further appeals pending. With the legal stay no longer in effect, the LTO Karachi was able to proceed with the recovery process.
Sources within the FBR revealed that the bank accounts of the builder were attached for the recovery, a decisive action that would enable the LTO Karachi to reclaim the owed amount. This operation underscores the LTO Karachi’s effective enforcement strategies and its role in ensuring that high-profile taxpayers meet their financial obligations.
The attachment for recovery of Rs 575 million not only reflects the efficiency of the LTO Karachi but also serves as a stern reminder to other major taxpayers about the importance of fulfilling tax liabilities. The LTO Karachi’s action is part of a broader effort by the FBR to enhance tax compliance and tackle significant cases of tax evasion.
In recent times, the LTO Karachi has intensified its focus on major taxpayers, leveraging audits and legal measures to recover unpaid taxes and strengthen the national revenue system. The recovery from the builder is a testament to the agency’s commitment to ensuring that all taxpayers, regardless of their stature, adhere to their fiscal responsibilities.
The LTO Karachi’s attachment of bank accounts in this case illustrates its crucial role in the FBR’s tax collection efforts and sets a precedent for future enforcement actions against tax defaulters.
