EIGHTEEN projects’ investors refute tax evasion allegations

ISLAMABAD: The foreign investors of the real estate projects (EIGHTEEN) on Thursday strongly refuted Punjab Revenue Authority’s (PRA) allegations of tax evasion and affirmed unwavering commitment to legal and tax compliance.

While talking to business recorder, head of Media and PR, Aqeel Shighri rejected the PRA’s move of leaking information of enforcement/recovery action against the world leading development project without completion of inquiry, required as per provincial law, for recovery proceedings.

Aqeel stated that being a project of renowned international real estate developers, EIGHTEEN follows all the applicable laws, rules and regulations. EIGHTEEN is an active and responsible taxpayer and diligently pays all applicable taxes, whether federal, provincial, or local, and is committed to full compliance in term of taxes.

He further told that, in 2019, the PRA approached EIGHTEEN for analysis and scrutiny of its tax documents. “At EIGHTEEN, we maintain an open and transparent relationship with the tax authorities and therefore, we fully cooperated with PRA’s audits and inquiries, providing all necessary documentation to support our tax compliance. PRA accordingly gave its clearance to EIGHTEEN’s tax submissions to the PRA until 30 June 2021. Even after that, EIGHTEEN has continued to deposit all taxes, whether to the FBR, the PRA, or other tax authorities.”

Aqeel shared, “On 7 November, 2023, PRA’s officials came to EIGHTEEN’s offices, without any prior notice and on the next day, issued a show cause notice to EIGHTEEN alleging that EIGHTEEN had not paid certain taxes to the PRA. Even though the said show cause notice gave EIGHTEEN timeframe until November 22, 2023, to reply to the allegations, the notice was leaked on the same day to various media outlets along with allegations from the PRA that EIGHTEEN is involved in tax evasion.

“We believe that these allegations of tax evasion are unfounded and not even based on PRA’s own records. Our team has conducted a thorough internal review, and we are confident that we have adhered to all applicable tax laws and regulations,” he added.

EIGHTEEN is a responsible organisation and is always open to oversight by the relevant regulatory bodies, including PRA. However, the manner in which the PRA leaked the show cause notice is wrong. This can prejudice the outcome of any proceedings and such heavy handed tactics and scaremongering will not only discourage foreign investors from coming in Pakistan but will also create distrust among stakeholders in and outside of Pakistan.

“EIGHTEEN is bringing huge investment into the country to help the economy grow while doing business but such unreasonable conduct from authorities like PRA can hurt future investments in Pakistan. We believe in ethical and responsible business practices and will approach all the relevant forums for redressal of our grievances and to rectify the damage done to our business and reputation by PRA’s actions,” he maintained.

“We believe in the importance of maintaining trust and credibility in the business community, and we are fully committed to addressing any concerns that the government authorities, including PRA may have. If there are specific issues or questions regarding our financial practices, we are ready to engage with any government authority to clarify the matter and to comply with any legal requirements, however, such reported allegations in media, without concrete evidence, and before conclusion of any proceedings, can cause serious damage to the business and investment environment of Pakistan,” he added.

Copyright Business Recorder, 2023