ISLAMABAD: The Supreme Court dismissed the Federal Board of Revenue's (FBR) appeal as it failed to furnish proof of notices showing additional taxes levied on Pakistan Muslim League-Nawaz (PML-N) President Shehbaz Sharif and late Kulsoom Nawaz, wife of former Prime Minister Nawaz Sharif.

A three-member bench, headed by Justice Umar Ata Bandial, on Monday heard an appeal of Commissioner Inland Revenue, Lahore, against the Lahore High Court (LHC)’s judgment.

The LHC on the writ petition of Kulsoom Nawaz and Shehbaz Sharif had delivered judgment against the FBR as the department failed to submit the proof of the notices for additional tax issued to the PML-N leaders. The department, therefore, approached the apex court against the LHC verdict.

'Inflated' tax notices to Shehbaz, late Kulsoom: FBR given last opportunity to furnish proof

In the last hearing, the apex court had provided last opportunity to the FBR to furnish proof of the notices. Justice Bandial had stated if it was proved that the notices had been received then the additional taxes will be effective; otherwise, the apex court will throw out the case filed by the FBR against the LHC’s decision.

It was claimed by the FBR that under Section 31 of Wealth Tax Act, if a taxpayer does not pay the tax within the prescribed period then he has to pay the additional tax. It contended that Kulsoom Nawaz and Shehbaz Sharif did not pay tax during the period 1994-95 and 1996-97. As the FBR could not prove that the demand notices were sent to the respondents, therefore, the court consequently, dismissed the board’s request.

This article was originally published in Business Recorder on December 07 2021.