PESHAWAR, Pakistan: The Khyber Pakhtunkhwa Revenue Authority (KPRA) has issued a Show Cause Notice to Telenor Pakistan (Pvt.) Limited for not paying taxes for last six months despite collecting it from KPK customers.
The notice was issued on January 1, 2020 for suspension of registration of Telenor Pakistan under Section 45 of the KP Finance Act, 2013.
KP Revenue Authority strict enforcement starts across the board. Notice served to suspend registration of @telenorpakistan for not paying taxes for last 6 months despite collecting it from KP customers. Similiar strict actions underway against other companies and businesses in KP pic.twitter.com/Kwf4ZMIKIO
— Khyber PakhtunKhwa Revenue Authority (@kpra_official) January 1, 2020
The notice stated “Where it has been reported to the KP Revenue Authority that you: M/s Telenor Pakistan (Pvt.) Limited registered with the Authority as a service provider with registration KNTN 2046004-0 (enrolled on 16-08-2013) have failed to file your monthly sale tax returns (which must be true and correct as per legal requirement) as required under Section 52 of the KP Finance Act, 2013 read with Para 18 of the KPRA Sales Tax on Service Regulation, 2017 and have not paid KP Sales Tax on Telecommunication Services in terms of Section 26 and 34 of the said Act read with Para 26 and the said Regulation from June, 2019 onwards.
And whereas you have been charging and collecting from the public (your customers) KP Sales Tax on your taxable services from June, 2019 onwards but have not paid the same to the KP Government as required under the above referred law and this act on your part falls in the category of “tax fraud” as defined under Section 2 (53) of the KP Finance Act, 2013 as non-payment of KP Sales Tax despite collection tantamount of suppression (all expressions, like non-disclosure, concealment, hiding or keeping secret etc are covered here) of tax liability, the offence of tax fraud being liable to criminal cognizance/action and punishable under Serial Nos. 2, 4, 9 and 14 of the Table under Section 64 (1&2) of the KP Finance Act, 2013.
Not therefore, you M/s Telenor Pakistan (Pvt.) Limited are served with this notice in terms of Section 45 of the aforesaid Act calling you to explain within seven days herefrom, as to why your registration with the Authority, which has already been inactivated by the KPRA’s Computer System under KPRA’s Circular No. 04 of 2017, dated 03-08-2017, should not be suspended in case either no response (inarguably including immediate filling of outstanding returns and correct payment of due KP Sales Tax on services) is received from you within seven days or your response is found unsatisfactory, by removing your name from the list of registered persons on KPRA’s website thereby rendering to legally unauthorized to provide taxable services in the province of Khyber Pakhtunkhwa.
Your response to this notice must reach the undersigned by 8th January, 2020 and in case you want to be heard in person or through your authorized representative, you or your representative may appear before the undersigned on 10th January, 2020 at 10:30 AM in the KPRA’s Headquarters and in case no response is received from you by the expiry of the above stipulated time or no body appears on the said date, further action in the matter shall be taken and the case will be finalized and decided on the basis of available facts and record without any further reference to you.”
As per the Khyber Pakhtunkhwa Revenue Authority, similar strict actions are also underway against other companies and businesses in KPK.
Meanwhile in its response to the notice, Telenor Pakistan (Pvt.) Limited stated “Telenor Pakistan has been making a positive contribution to the society and economy and is one of the largest contributors to the national exchequer which stands over PKR 300 billion in the form of direct and indirect taxes. As one of Pakistan’s largest taxpayers, we understand the importance of the taxes we pay in supporting national development and growth of communities. We always take a responsible approach with respect to our tax obligations. We are committed to meeting all legal obligations and carrying out our operations in strict accordance with the laws of the land.”