Karachi, October 3, 2025 – TRG Pakistan Limited has released its Annual Report for 2025, providing detailed clarification on ongoing income tax disputes with the Federal Board of Revenue (FBR).
The company highlighted that the deemed assessments for tax years 2003 and 2004 had been amended by the tax authorities, rejecting exemptions claimed under clause (101) Part I of the Second Schedule to the Income Tax Ordinance, 2001. Consequently, tax demands of Rs. 0.60 million and Rs. 0.09 million were raised for the respective years. TRG Pakistan filed first appeals with the Commissioner Inland Revenue (Appeals), which were rejected. However, the second appeals filed before the Appellate Tribunal Inland Revenue (ATIR) were decided in favor of the company through a consolidated order dated March 28, 2013. The company has applied for the issuance of appeal effect orders, which remain pending. No provisions have been made in the financial statements for these matters.
For the Tax Year 2022, the Assistant/Deputy Commissioner Inland Revenue (ACIR) raised a tax demand of Rs. 354,547,720 regarding super tax under Section 4C of the Income Tax Ordinance on unrealized dilution gains related to TRG Pakistan’s long-term investment in its associated company, The Resource Group International Limited (TRGIL). TRG Pakistan has filed an appeal before the ATIR, which is still under consideration. The company also approached the High Court of Sindh, which issued an order restraining tax authorities from taking any coercive recovery measures. Based on advice from its tax consultants, TRG Pakistan’s management remains confident that the matter will be resolved in its favor.
Additionally, for the Tax Year 2021, TRG Pakistan faced an amended deemed assessment questioning certain deductions and raising a tax demand of Rs. 9.38 million. The company filed an appeal before the Commissioner Inland Revenue (Appeals) and paid 10% of the demanded tax to prevent recovery proceedings. The appeal is pending, and in line with its legal and financial advisors, TRG Pakistan believes the outcome will ultimately be favorable. Accordingly, no provision has been made in the financial statements, and the 10% paid amount has been recorded as advance tax.
Through these disclosures, TRG Pakistan emphasizes transparency and proactive engagement with tax authorities, reaffirming its commitment to regulatory compliance while protecting shareholder interests.