Cellular companies pay Rs42.5bn taxes in 5 years

ISLAMABAD: The five cellular companies operating in the country paid income taxes of Rs42549.3 million during the last five years (2012-13 to 2016-17), official data revealed.

The cellular companies including Zong, Ufone, Mobilink, Telenor and Warid Telecom paid income tax of Rs6419.3 million during the fiscal year 2012-13 while an amount of Rs10,358.3 was paid in 2013-14.

Likewise, the cellular companies paid taxes of Rs8286.9 million in 2014-15, Rs8149.5 during the FY2015-16 while an amount of Rs9335.3 was paid during the last fiscal year 2016-17, according to the officials data.

As per the data, the highest amount of tax was collected by the government during year 2013-14, followed by 2016-17, 2014-15, then 2015-16 and 2012-13.

Meanwhile giving details about the audit of these companies, officials sources said that audit of these cellular companies was conducted under three tax statues i.e. Income Tax Ordinance, 2010, Sales Tax Act, 1990 and Federal Excise Act, 2005.

The Audit commences after the case is selected for audit under section 177/214C of the Income Tax ordinance, 2001, section 72B/25 of the Sales Tax, Act, 1990 and Section 46/42B of FED Act, 2005.

Selection is done by both the concerned Commissioner and Federal Board of Revenue which is followed by Audit Manual that prescribe a pre-audit conference with the taxpayer in which scope of audit and time line to complete audit is decided.

Consequently Information Document Request (IDRs) is issued for seeking relevant records and information.

After obtaining books of accounts and documents provided by the taxpayer an audit report is prepared and if required a post audit conference is again conducted with the taxpayer to apprise the legal and factual discrepancies.

Thereafter, legal notice to amend the assessment order / return of the taxpayer is issued to provide lawful opportunity of being heard.

After affording such opportunity amended order is passed containing discussion and findings of the tax audit officer, which is served upon taxpayer along with tax demand notice.