PCB`s bank account frozen by FBR
Lahore: The PCB has had its account frozen by the Federal Board of Revenue (FBR), which also made a recovery of around 30 million rupees as outstanding taxes to be paid by the board.
The board confirmed in a statement that the FBR had unilaterally recovered money from its account after freezing it but claimed the tax authorities didn`t follow the course of law while carrying out its duties.
The board said in the statement that the FBR did not serve any notice to PCB before recovering money from the board`s bank account and didn`t give them an opportunity of being heard.
"We should have been given an opportunity to be heard in the presence of a Stay order issued by the Honourable Appellate Tribunal Inland Revenues in favour of PCB and we see recovery of this amount from PCB bank Account is an illegal act," it said.
Although the board didn`t mention how much money was recovered from its account as outstanding withholding tax by the FBR but sources in the know of developments said it amounted to around 30 million rupees.
"The board has been pleading with the government to reconsider an amendment made in the income tax ordinance of 2001 in 2008 after which all income of the PCB became taxable," one source said.
He said the FBR had now deemed all income of the board taxable although all other sports in Pakistan were given tax exemption.
"It is very unfair with the PCB that while all other sports bodies are exempted from tax only cricket is taxed," a source added.
He pointed out that already withholding tax on fees and remunerations paid to players and salaries of employees were taxable.
"But despite this all other income has also been deemed taxable by the FBR which says the PCB is the richest sports body in the country."