PALPA House Under Investigation for Tax Evasion

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Abbas Ali
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PALPA House Under Investigation for Tax Evasion

Post by Abbas Ali »

According to Directorate Intelligence & Investigation of Federal Board of Revenue (FBR), a total of 340 million rupees tax has not been paid by Pakistan Air Line Pilots' Association (PALPA) House since past six years. This amount includes 140 million rupees income tax and 200 million rupees withholding tax.

PALPA House is also not paying sales tax to Sindh Revenue Board (SRB). Nearly 130 million rupees as sales tax are due to be paid to by PALPA House to SRB.

The pilots' association constructed PALPA House for its members on 8,750 square yards welfare plot in Clifton, Karachi. The three storey PALPA House includes thirty rooms, suites, banquet halls, swimming pool, tennis court and lawn.

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PALPA House in Karachi

PALPA had obtained additional land from Cantonment Board for constructing a school and library. However, so far, the school and library have not been constructed.

PALPA House administration charges ten to twenty thousand rupees per room per day. PALPA House lawn and banquet halls are also made available to non-member clients for holding different kinds of events for charges up to six hundred thousand rupees.

Income from these business activities is not shown in tax forms submitted by PALPA House.

Directorate Intelligence & Investigation of Federal Board of Revenue (FBR) after completion of secret investigation sent two notices in recent months to PALPA House to seek required tax record.

Now, a third notice has been sent after delay tactics adopted by PALPA House. The notice seeks details of income from banquet hall and lawn events and earnings from room bookings. PALPA House also questioned for not entering details of taxable income.

Info source: https://www.express.com.pk/epaper/PoPup ... e=20200801
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