FBR reveals Rs 340 million tax evasion of PALPA House

Directorate General of Intelligence and Investigations (DGI&I) of the Federal Board of Revenue (FBR) has revealed tax evasion of Rs 340 million by Pakistan Airlines Pilots’ Association (PALPA).

According to the details, the DGI&I has sent notice to PALPA seeking details and records pertaining to its income and bookings at PALPA House. Moreover, the PALPA House is not making payments for sales tax to the Sindh Revenue Board and owes approximately Rs 140 million and Rs 200 million on account of withholding taxes.

Sources said that PALPA has set up a three-storey PALPA House for its members at 8,750 square-yard plot in Clifton with at least 30 luxury rooms, suites, banquet halls, swimming pools, tennis court and other facilities.

Moroever, PALPA had acquired additional land from the Cantonment Board for a school and library at PALPA House but so far neither a school nor a library has been set up however the PALPA House is being operated on a full commercial basis.

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FBR sources said that the management of PALPA House charges Rs 10,000 to Rs 20,000 per room per day while the lawn and luxurious banquet hall of PALPA House are provided to non-member clients at very expensive rates for various events. But despite the significant income from these commercial activities, the income tax department does not disclose the income in the tax returns filed by PALPA House.

According to the sources, after a secret investigation by the directorate into the commercial activities of PALPA House, the management has issued two notices in the last few months for the required tax record. The directorate also issued a third notice, sent on Thursday, seeking an explanation from PALPA over its failure to mention this taxable income in its tax statements.

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