FBR seals Jazz head office for non-payment of over Rs 25bn taxes

The Federal Board of Revenue (FBR) has sealed off the head office of Pakistan’s biggest Telecommunication provider, Jazz, in Islamabad after the tax collecting authority alleged that the telco has not paid taxes amounted over Rs 25 billion.

FBR in an order stated that the Income Tax amount of Rs 25,393,653,480 is outstanding against the defaulter (Jazz) while the defaulter is refraining itself “deliberately, dishonestly and without lawful excuse to discharge tax liability and thus causing huge loss to the national exchequer.”

“Therefore on the basis of facts stated inter alia I, Ahmad Shakeel Babar Deputy Commissioner Inland Revenue in exercise of the power vested in me in terms of Section 138 of the Income Tax Ordinance, 2001 read with section 48 of the sales tax act 1990 order to seal the business premises of the defaulter till the payment of outstanding dues in full or withdrawal of this order,” read the FBR order.

The order further stated that the head office of Jazz in Islamabad will remain sealed till the payment of outstanding dues in full or withdrawal of this order.

“Non-compliance/ defiance to this order shall be tantamount to obstruction in discharge of functions of an Income Tax Authority and shall be punishable on conviction with a fine or imprisonment for a term not exceeding one year or both under section 196 of the Income Tax Ordinance, 2001.”

On the other hand, a spokesperson of the telecom company stated, “Jazz is a law-abiding and responsible corporate citizen. Our contribution to Pakistan's economy over the past 25 years is significant.

“We have received a notice from FBR this afternoon. Jazz has made tax submissions based on legal interpretations of the tax owed. We will review and take measures under our legal obligations and will collaborate with all institutions for an early resolution of this issue.”