Business brands of defaulter co: FBR to auction off trademarks, properties

ISLAMABAD: The Federal Board of Revenue (FBR) for the first time has decided to auction the copyrights/ trademarks and movable/ immovable properties of business brands of a defaulter company engaged in the manufacturing of cosmetic products.

In this regard, the Corporate Tax Office (CTO) Lahore has announced an auction of the trademarks of the said company on August 21, 2023.

The CTO Lahore will publicly auction the immovable properties of a defaulter company for the recovery of the outstanding government dues.

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According to the auction details issued by the CTO Lahore, Farvil Cosmetics (Pvt) Ltd and its directors have failed to deposit the due amount of taxes including sales tax of Rs 155,391,111, penalty of Rs 155,391,111 and default surcharge to be calculated at the time of recovery. The immovable properties of the defaulter taxpayer have been attached for sale for recovery of government dues.

The auction of attached properties included trademark, commercial properties as well as vehicles.

In the past, Directorate General of Intelligence and Investigation Inland Revenue (DGIIIR) had investigated a case of massive tax evasion by a prominent company engaged in the manufacturing of cosmetic products.

In this connection, the Corporate Regional Tax Office Lahore has also coordinated with the Director General of the Intellectual Property Organization of Pakistan (IPO), seeking details about the trademarks and copyrights and other movable properties of the said company.

The Tax department has declared the trademark as an asset and sought the details including current status of all other copyrights and trademarks of this company, including Bio Amla, a trademark registered in the name of the company and its board of directors.

Copyright Business Recorder, 2023