THURSDAY JUNE 06: Tax liabilities: PTA's accounts frozen; Rs two billion recovered

ISLAMABAD: Large Tax-payer Unit (LTU) Islamabad has frozen the bank accounts of Pakistan Telecommunication Authority (PTA) and recovered Rs 2.038 billion pertaining to past tax dues and income tax liabilities. Sources told Business Recorder here on Wednesday that the LTU Islamabad launched a hectic recovery drive against the organisations/private sector entities, which have not cleared their huge tax liabilities.
The recovery efforts have been intensified to recover the unpaid amount of tax from units/departments falling within the jurisdiction of the LTU Islamabad. Tax authorities in LTU Islamabad are making day and night efforts to meet assigned targets by end June 2013.
During ongoing action against the units which failed to clear their past tax liabilities, LTU Islamabad has frozen the bank accounts of the said regulatory authority. The tax liabilities were related to the past tax year of 2006, but the income tax dues were not paid by the concerned authority. LTU Islamabad timely acted and frozen the bank accounts of the said authority and successfully recovered an amount of Rs 2.038 billion, officials added.
When contacted, tax experts opined a trend has been observed that government departments and regulatory bodies opt for litigation against government departments instead of payment of their tax dues as admissible under the law. Instead of payment of taxes, the government departments file appeals against the tax department ie another government department. There are cases of litigation between government departments on the tax related disputes.
This trend has been increasing day-by-day which is hampering smooth payment of taxes by the government departments and regulators. Tax arrears of billions are stuck-up in litigation in courts. Such government departments and regulators spend huge amount on fees for hiring lawyers but are not ready to pay a single penny of admissible amount of taxes.
It would be more appropriate to settle tax-related disputes with the FBR instead of going into prolonged litigation against the tax department. This trend needs to be discouraged and tax-related issues to be resolved amicably. The Board always welcomes resolution of tax-related issues without going into litigation which needs to be understood by the government departments as well as regulators, etc, they added.