ISLAMABAD: The Federal Board of Revenue (FBR) has decided to start an audit of the income tax and sales tax affairs of Hascol Petroleum Limited and its senior management.

It is reliably learnt that the audit of the tax affairs of the company would be started. The FBR’s relevant field office will also conduct an audit of the tax affairs of the management and the board of directors of the said company.

In this connection, the relevant tax office will issue audit notices to the company and its management. The scope of the audit would cover taxation matters, Benami laws, and provisions of the anti-money laundering law. The audit period of the company, management and board of directors would cover 2018-20, sources added.

Criminal proceedings likely: SECP to conduct Hascol's forensic audit

In August 2021, the Securities and Exchange Commission of Pakistan (SECP) Chairman, Aamir Khan, gave a presentation to the Senate Standing Committee on Finance. As per the presentation, the SECP has conducted an investigation and forensic audit into the financial matters of the company.

Further actions against the auditor may be taken based upon the findings of the investigation.

At that time last year, the committee had also received a comprehensive briefing from the State Bank of Pakistan (SBP) and the SECP on the financial reporting issue of the company. The committee was informed that in 2019, the liabilities increased from Rs24 billion to Rs44 billion as compared to 2018.

Copyright Business Recorder, 2022