PTCL says disputed tax matters remain under appeal, with stays obtained against recovery of the outstanding amounts.
ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) has disclosed tax contingencies with a potential tax impact of approximately Rs55.30 billion in its financial report for the first half of calendar year 2026 (1HCY26).
According to the financial report submitted to the Pakistan Stock Exchange (PSX), the disputed tax matters relate to tax years 2007, 2009, 2010 and 2011 to 2024.
The company said tax authorities had disallowed certain expenses and tax credits and raised demands over the short deduction of withholding tax (WHT) for various tax years.
PTCL challenged the disputed orders before the relevant appellate forums, which granted partial relief in several cases.
After taking into account orders issued by the Commissioner Inland Revenue (Appeals), Appellate Tribunal Inland Revenue (ATIR) and rectification orders, the tax impact of the remaining disputed matters stood at Rs55.296 billion.
Appeals pending before tax tribunals
PTCL said appeals concerning the outstanding tax matters were pending adjudication before the ATIR.
The company also disclosed that the reference relating to tax year 2007 was sub judice before the Islamabad High Court.
PTCL said stays had been obtained in all cases from the relevant forums, protecting the company against recovery of the disputed tax amounts while the legal proceedings remain pending.
Rs5.94bn matters remanded for reconsideration
Meanwhile, the Commissioner Inland Revenue (Appeals) remanded disallowances relating to tax years 2014 and 2020 to the taxation officer for reconsideration.
According to PTCL, these remanded matters carry a combined tax impact of Rs5.938 billion.
The company’s latest disclosure forms part of the contingent tax matters reported in its financial statements for the six months ended June 30, 2026.
The disclosed amounts remain subject to the outcome of ongoing appeals and court proceedings, with no final determination of the disputed tax liabilities at this stage.