K-Electric rejected the claims of tax evasion being made by Transparency IInternational Pakistan. The power utility, in a statement said that for a reputed organisation, levelling such charges shows a disregard for diligence and research, and a lack of knowledge on the income tax and sales tax laws of Pakistan. The press statement clarified that KE''s financial statements are audited by reputed audit firms and all tax returns are prepared and filed by well-known consultants in compliance with Pakistan Tax Codes.
A Press statement stated that the company''s total revenue comprises Sale of Energy, Tariff Adjustment and Rentals of Meters and Equipment, each of which had been independently verified and declared in the relevant section of the income tax forms. Tariff Adjustment granted to consumers is exempt from income tax under clause 102(A) of Part I of the Second Schedule to the Income Tax Ordinance, 2001.
This was being misconstrued as tax evasion, which is an unprofessional thing for Transparency IInternational Pakistan to do. KE''s financial statement which is released every year carries these numbers in detail which could be verified, something Transparency IInternational Pakistan should have done via experts. The statement also added that sales taxes on electricity bills have been deposited with the Government Treasury as per the provisions of the Sales Tax Act of 1990, and requested that Transparency IInternational Pakistan demonstrate specific instances where KE has failed to deposit. All income tax returns filed from 2009 to 2013 are based on audited accounts in accordance with the Tax Ordinance 2001. Making allegations without understanding the cash flow and applicability of laws is unbecoming of an institution like TIP.
Comments
Comments are closed.