ISLAMABAD: Federal Board of Revenue (FBR) directed the Large Taxpayer Unit (LTU) Islamabad to recover the government revenue of Rs 266.61 million along with penalty and default surcharge from six IPPs companies including M/s Foundation Power Company, M/s Hallmore Power Generation Company, M/s Rousch Pakistan Power Limited, M/s TNB Liberty Power Company, M/s Saba Power Company and M/s UCH-11 Power Private Limited.
According to sources, six taxpayers (IPPs) under the jurisdiction of Large Taxpayer Unit (LTU) derived income from power generation and sales to Water and Power Development Authority (WAPDA) which is exempt under the Second Schedule of Income Tax Ordinance 2001. The taxpayers also earned other income (profit on debt) during the year which was taxable under the law but taxpayers were not charged as per law resulting in loss of revenue of Rs 266.61 million.
It is important to mention here that according to section 39 of income tax ordinance 2002, income of every kind received by a person in a tax year, if it is not included in any other head, other than income exempted from tax under this ordinance, shall be chargeable to tax in that year under the head “Income from Other Sources”. Federal Board of revenue also instructed to LTU to probe the matter.