ISLAMABAD: Islamabad High Court (IHC) observed that the federal government and its Revenue Division (FBR) engaging in incessant litigation with companies wholly owned by the federal government is a huge drain on the public exchequer.

The IHC has issued the latest order in the case of Islamabad Electric Supply Company (IESCO) and also forwarded a copy of the order to the secretary Ministry of Finance Division, the secretary Ministry of Energy (Power Division), and the chairman Federal Board of Revenue (FBR) to consider if a mechanism could be set up in the first instance to address tax claims in relation to state entities wholly owned by the federal government, without the need to initiate litigation.

When contacted, Waheed Shahzad Butt, who is representing IESCO, said that through a cost has also been imposed by IHC on IESCO being a state-owned entity but the IHC has imposed a fine of Rs500,000 on Commissioner (IR), Large Taxpayer Office, Islamabad for filing a frivolous application before the IHC to deprive IESCO to reimburse the amount recovered through bank accounts attachments. The IHC ordered that the cost of Rs500,000 payable by the applicant (Commissioner) in her personal capacity for filing a frivolous application. It appears that by filing a frivolous application another attempt is being made by the CIR to delay and deny illegally and coercively recovered funds during the currency of a stay order.

Copyright Business Recorder, 2024


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