Karachi, February 26, 2025 – United Bank Limited (UBL) has disclosed an ongoing legal dispute with the Federal Board of Revenue (FBR) over tax-related matters.
The bank, in its recently released financial results for the year 2024, highlighted its position regarding tax assessments and pending appeals against FBR’s amended orders.
According to UBL, the bank has submitted its income tax returns up to the tax year 2024 (accounting year ending December 31, 2023) under the provisions of section 120 of the Income Tax Ordinance, 2001. However, the tax authorities at FBR have issued amended assessment orders spanning from tax years 2003 to 2024, resulting in additional tax demands amounting to Rs.16,123 million (2023: Rs.14,124 million). UBL has contested these orders by filing appeals at various appellate forums.
The bank stated that while appellate authorities have granted relief on certain matters, the FBR has escalated appeals to higher forums in cases where rulings were not in its favor. Likewise, UBL has also filed appeals for cases where relief was not granted. The management remains optimistic that final rulings will favor the bank.
Furthermore, UBL confirmed that tax returns for its Azad Kashmir (AK) and Gilgit Baltistan (GB) branches have been filed up to the tax year 2024 in accordance with the Azad Kashmir Council agreement of May 2005. These returns are deemed assessed under the applicable tax laws.
Additionally, the FBR has conducted tax monitoring on Federal Excise Duty, Sales Tax, and withholding taxes for the period covering 2005 to 2019. This review resulted in addbacks and a total tax demand of Rs. 2,632 million (2023: Rs. 2,632 million). UBL has formally appealed against these tax demands and remains confident that the appellate authorities will rule in its favor.
For its international operations, UBL confirmed that tax returns for its UAE and Qatar branches have been filed up to December 31, 2023, while Yemen branches have filed up to December 31, 2019. These filings are considered assessed unless formally reopened for reassessment.
With the ongoing legal proceedings, UBL continues to engage in discussions with FBR to resolve tax disputes while maintaining compliance with domestic and international tax regulations.