Large Taxpayers Unit (LTU), Karachi, has made a huge tax recovery of Rs 1.285 billion during outgoing calendar year from National Insurance Company Limited (NICL); it was learnt here. Official sources told Business Recorder that the zone-III, unit-3 of LTU, Karachi, after receiving no response against its several tax recovery notices had frozen the bank accounts of NICL and recovered Rs 1.285 billion under section 140 of the Income Tax Ordinance, 2001 read with Rule 69 of Income Tax Rules, 2002.

Sources said that the NICL remained unable to finalize its audit for tax years 2013 to 2017 due to absence of full quorum of its board of directors hence the company did not fulfill its statutory liability. They said the tax department after extensive assessment of company''s accounts had raised a tax demand of Rs 1.285 billion - income tax (2017) and advance tax (2019).

Furthermore, sources said that an amount of Rs 1.285 billion was tax due, outstanding against the NICL, which had not paid this amount.

The tax department attached the bank accounts of NICL and recovered Rs 1.285 billion from its bank accounts on Monday.

Copyright Business Recorder, 2019