Directorate General of Intelligence and Investigation Inland Revenue has framed a case against M/s Pakistan WAPDA Foundation, Lahore, for non-payment of sales tax and income tax to the tune of around Rs 1.5 billion for carrying out multiple business activities without obtaining registration with the sales tax or income tax departments.
Sources told Business Recorder here on Tuesday that the said foundation, a society registered under the Punjab Societies Registration Act, 1860, is engaged in multiple business activities which include manufacturing & supply of transformers, assembly of transformers, operating petrol pumps at various locations, and operating vehicle repair & transformer reclamation workshops etc. Since the foundation was neither registered with the sales tax nor income tax, the intelligence agency examined the case from the point of taxation under the relevant laws.
Resultantly, investigation report was sent to the concerned Commissioner Inland Revenue, RTO-II, Lahore, for proceeding further in the matter as per law. The Directorate's understanding is that proceedings under the Sales Tax Act 1990 stood concluded in the case; however, action under the income tax law is yet to be pressed into service.
As per agency, the foundation squarely falls in the definition of "company" under section 80(2) (b)(v) read with section 2 (12) of he Income Tax Ordinance, 2001; therefore, jurisdiction over this case lies with Corporate RTO, Lahore. In view of facts, it is requested that case record of the taxpayer under consideration may be transferred to its proper jurisdiction so that efforts for retrieval of loss of revenue can be expedited and any problem at appellate stage is not faced on account of objection regarding jurisdiction, sources added.