In Islamabad, the Federal Board of Revenue (FBR) has initiated an income tax audit against an IT company suspected of tax evasion.
FBR officials have invoked Section 177 of the Income Tax Ordinance to request the company’s account records from M/s Prunet Private Limited.
The decision to scrutinize the company’s accounts was prompted by significant inconsistencies in its income tax returns over the past seven years. This action followed revelations of tax evasion by the Karachi field office, prompting intervention from FBR headquarters.
It’s been reported that the company received tax notices totaling lakhs of rupees between 2016 and 2022, yet only minimal tax payments were made, leading to a decision to audit the 2023 income tax records.
While the audit’s outcome remains pending, preliminary findings suggest substantial discrepancies. Reportedly, the company declared a taxable income of 146.6 million rupees for 2023 but claimed expenditures of 93.3 million rupees, a misalignment with its income and operational plans. Furthermore, the company allegedly only paid 43.6 million rupees in taxes, significantly below the legal requirement.
