PCB account frozen over unpaid tax

The Federal Board of Revenue (FBR) in Pakistan has frozen the PCB's account over outstanding taxes worth about Pakistan Rs 30 million (US$317,000 approx). The board has heavily criticised the action and said the FBR did not follow proper procedures.

According to the Express News, the PCB owed Rs 30 million to the FBR out of which Rs 18 million has been recovered after freezing the PCB's account. The FBR spokesman wasn't available to comment though PCB have denied being a defaulter and called the act as illegal.

"FBR didn't serve any notice to PCB before recovering money from PCB bank account and an opportunity of being heard was required before doing such act," the PCB said in a statement. "The issued Stay Order from Honorable Appellate Tribunal Inland Revenues in favour of PCB recovery of this amount from PCB bank Account is an illegal act."

This is not the first time the FBR has recovered the withholding tax by freezing the PCB's account with Rs 70 million was obtained in June this year in similar circumstances.

According to the PCB, the Commissioner Income Tax (Appeals) granted the stay order for the recovery of money pertaining to the tax year 2006 and proceedings are currently underway before the Appellate tribunal.