Cellular cos paid Rs42.5bln taxes in 5 years

Our Correspondent

ISLAMABAD:  The five cellular companies, including Zong, Ufone, Mobilink, Telenor and Warid Telecom, operating in the country have paid income tax of Rs.42.5493 billion during the last five years (2012-13 to 2016-17).

The cellular companies paid income tax of Rs.6419.3 million during the fiscal year 2012-13, Rs.10,358.3 during 2013-14, Rs.8286.9 million in 2014-15, Rs8149.5 during the FY2015-16 and Rs.9335.3 was paid during the last fiscal year 2016-17, according to the officials data.

As per the data, the highest amount of tax was collected by the government during year 2013-14, followed by 2016-17, 2014-15, then 2015-16 and 2012-13.

Meanwhile giving details about the audit of these companies, officials sources said that audit of these cellular companies was conducted under three tax statues i.e. Income Tax Ordinance, 2010, Sales Tax Act, 1990 and Federal Excise Act, 2005.

The Audit commences after the case is selected for audit under section 177/214C of the Income Tax ordinance, 2001, section 72B/25 of the Sales Tax, Act, 1990 and Section 46/42B of FED Act, 2005.

Selection is done by both the concerned Commissioner and Federal Board of Revenue which is followed by Audit Manual that prescribes a pre-audit conference with the taxpayer in which scope of audit and time line to complete audit is decided.

Consequently "Information Document Request" (IDRs) is issued for seeking relevant records and information.

After obtaining books of accounts and documents provided by the taxpayer an audit report is prepared and if required a post audit conference is again conducted with the taxpayer to appraise the legal and factual discrepancies.

Thereafter, legal notice to amend the assessment order / return of the taxpayer is issued to provide lawful opportunity of being heard.

After affording such opportunity amended order is passed containing discussion and findings of the tax audit officer, which is served upon taxpayer along with tax demand notice.