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FBR field formations’ under assessment of taxable income causes loss of Rs4569.42m

FBR field formations’ under assessment of taxable income causes loss of Rs4569.42m

ISLAMABAD: Federal Board of Revenue four field formations in 70 cases under assessed the taxable income due to calculation errors and omissions which caused loss of Rs 4,569.42 million to national exchequer.

According to details available with Customs Today. FBR held four field formations including Regional Tax Office (RTO), Large Taxpayer Unit II Karachi (LTU), Corporate Regional Tax Office Karachi and Regional Tax Office Hyderabad responsible for incorrect computation of taxable income which caused short levy of tax while most of the cases are related to the LTU II Karachi.

M/s Ziauddin University (NTN 1363774) claimed exemption of clause 92 which was omitted through finance act and no income was offered which resulted in loss of  Rs295.90 million.

Likewise M/s Alam Cotton Mills Private Limited (NTN 2086735) showed consumption of self-manufactured finished goods in negative and the same was also added back in head of domestic finished goods and declared excess closing balance which resulted in loss of Rs80.43 million.

Federal Board of Revenue has directed to the filed formations to finalize the assessment and initiate the legal proceedings for charging the tax. FBR also directed field formations to inquire the matter and fix the responsibility.