Shell Pakistan Tax Fraud Exposed!! 0 222

Shell Pakistan Tax Fraud

It is learnt that Shell Pakistan Limited is caught for Rs. 1.675 billion tax evasion and thus the FBR suspended their Sales Tax registration (0205271000346).

LTU (Large Taxpayer’s Unit) in Karachi is one to suspend it which consequently puts a stop to the company’s import of petroleum products. Being blacklisted, the company cannot claim input tax on its sales either, for now.

LTU concluded that “oil company has concealed the stock of lubricating oil in Returns filed during the period of Dec-2016 to Feb-2018, which comes to the meaning of tax fraud”

FBR notice stated “It is noteworthy that the Registered Person continued the fraudulent practice till last Return filed for the month of March 2018, in order to safe guard the Government Revenue, this office immediately order for suspension of Sales Tax Registration of M/s. Shell Pakistan Limited under Section 21(2) of Sales Tax Act, 1990 read with Rule 12 (a) (i) of the Sales Tax Rules 2006 read with SRO SSS (1)/2006 dated 05-06-2006.”

A show cause notice with a meeting fixed for the 30th of April 2018 had been given to the company informing that if Shell Pakistan is unable to justify its position, recovery exercise would be initiated.

The LTU believes that the evidence is substantial and convincing enough to deduce that tax fraud was deliberately committed.

It was revealed that the tax department found hefty discrepancies in e-portal’s data accessible to the FBR, from November 2016 to February 2018, including suppressed sales of 2,096,357 metric tons of its oil and sales tax evasion amounting to Rs. 1.306 billion along with 2% extra tax amounting to Rs 153.69 million, default surcharge Rs. 142.503 million and penalty Rs. 73 million.

The LTU believes that the evidence is substantial and convincing enough to deduce that tax fraud was deliberately committed.

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