Shell Petroleum Company evaded taxes worth Rs 3 million
Lahore (Pakistan Point News – 27th Apr, 2018) The Federal board of Revenue (FBR) has been imposed a ban on Shell company for evading taxes.
According to details, the FBR has suspended the registration of Shell Petroleum Company for evading taxes worth Rs 3 million.
After the suspension of this registry, Shell would not be able to operate in Pakistan. The company concealed the actual prices of its product and paid fewer taxes.
Asma Iqbal said that during the examination of sales tax, Shell Pakistan had hidden the stock of lubricated oil from December, 2016 to February, 2018 by avoiding sales tax and federal excise returns.
Shell Pakistan did Rs 7.684 billion sale during this time. According to this sale, the company was bound to pay a tax of Rs 1.46 million. The FBR has imposed an additional charge sheet on Shell Company worth Rs 142.503 million and a fine of Rs 70.003 million according to 5% ratio. The FBR said that Shell Pakistan has been doing tax fraud for three years.
Shell Pakistan’s Response
"Shell Pakistan Limited (SPL) had received a notification from the FBR requiring the company to explain a tax discrepancy, SPL was allowed by the FBR to respond by 30 April 2018. The company had earlier clarified that the relevant amount of tax had been paid in full therefore there was no shortfall in the payment of tax. However, FBR proceeded with the suspension of SPL’s GST license before the stipulated time given to the company to respond. The suspension of registration was hence not justified, SPL therefore took the matter to the Honorable High Court of Sindh which has suspended the directive of FBR and ordered that it be reinstated with immediate effect. SPL complies with all statutory requirements of the Country, and strives to conduct its business in accordance with the applicable laws of Pakistan. SPL will continue to work closely with the tax authorities to resolve this issue."
