Pakistan Mobile Communications Limited Jazz bank accounts have been frozen by the Federal Board of Revenue (FBR) for failing to pay income tax in the sum of Rs. 5.7 billion.
According to reliable sources, the Enforcement Zone of the Large Taxpayers’ Office in Islamabad launched a massive recovery operation against the country’s largest telecom firm Jazz on Wednesday, attaching its bank accounts across the country for committing Rs. 5.7 billion in income tax default.
Jazz, formerly known as Mobilink, was required to pay Rs. 5.7 billion to the government exchequer by March 25th as its advance tax liability for the first quarter of the current tax year under the income tax law, but the company evaded payment, prompting the FBR to launch a recovery action and freeze the company’s bank accounts.
In addition to attaching bank accounts to recover evaded taxes, recovery letters were placed on Jazz franchisees in all major cities across Pakistan, allowing for direct recovery from monies owed to Jazz.
A tax default can be recovered by the Inland Revenue Department from any third party holding money or assets in the defaulter’s favour, according to the Income Tax Act.
FBR has sent letters to a number of additional third parties who hold funds or other assets on behalf of or owed to Jazz.
It’s worth noting that this is FBR’s third major enforcement action against telecom providers in less than a week, following similar moves against Telenor and Zong.