Karachi, February 19, 2026 – Soneri Bank Limited has revealed significant tax contingencies in its 2025 annual report submitted to the Pakistan Stock Exchange (PSX), highlighting ongoing disputes with the Federal Board of Revenue (FBR) that could involve billions of rupees in potential liabilities.
According to the report, the bank has filed income tax returns up to tax year 2024, with amended assessments issued by tax authorities for various years resulting in additional tax demands. While payments have been made under legal requirements, Soneri Bank has filed appeals before appellate forums to contest these claims.
Notably, assessments for tax years 2003 to 2010 have been decided at the Lahore High Court level, with petitions for tax years 2003–2005 and 2008–2010 now pending before the Supreme Court of Pakistan. In case of adverse decisions, the bank could face additional liabilities of Rs. 277.12 million. Other matters, including tax references for years 2011 and 2012, could potentially create liabilities of Rs. 639.57 million, while pending assessments for tax year 2001 may result in Rs. 1.225 million.
For tax years 2013 to 2021, assessments have been addressed at the Commissioner Inland Revenue (Appeals) level, with ongoing appeals potentially creating additional liabilities of Rs. 6,493.68 million. Separate appeals for tax years 2014, 2015, 2016, 2018, 2019, and 2024 may result in liabilities ranging from Rs. 16.63 million to Rs. 7,308.32 million if outcomes are unfavorable.
The bank also highlighted the windfall tax imposed under Section 99D of the Income Tax Ordinance, 2001, following the Finance Act 2023. The FBR issued a recovery notice of Rs. 1,021.891 million related to foreign exchange income, which Soneri Bank has paid under protest while challenging the legality of the SRO through a constitutional petition in the Lahore High Court.
Additionally, penalties of Rs. 30 million and Rs. 0.06 million were levied against bank staff under Sections 182/140 of the Income Tax Ordinance, which are currently under appeal. Soneri Bank’s management remains confident that most disputes will ultimately be resolved in its favor, potentially mitigating any additional tax liabilities.
The disclosures underscore the ongoing tax complexities faced by financial institutions in Pakistan, with legal and regulatory interpretations continuing to impact the sector’s financial planning and reporting.