LAHORE: The tax audit of Millat Tractors Ltd (MTL) conducted by the Large Taxpayer Office (LTO), Lahore,has found major sales tax differences of up to Rs13.28 billion.
The audit of the country’s leading tractor manufacturingcompany has been submitted to the Federal Tax Ombudsman (FTO).
According to the reports, issuing a show-cause notice for thetax year 2022 to explain sales tax discrepancies of Rs13.28 bln, the Large Taxpayer Office has imposed a penalty of Rs5.41bn, besides a sales tax demand of Rs13.28bn to Millat Tractors Ltd.
Furthermore, the LTO Lahore informed the Federal Tax Ombudsman that the quasi-judicial proceedings are underway after the issuance of the show-cause notice under Section 11 of the Sales Tax Act 1990.
Earlier, the President of Pakistan had directed the Federal Board of Revenue (FBR) to restore the investigation against MTL into alleged inadmissible sales tax refunds of over Rs12bn for the tax period 2018-22.
The president had dismissed representations filed by the FBR and the MTL and endorsed the FTO order to initiate recovery proceedings against the company.