FBR issues notice to NAB over payment against Broadsheet LLC
The Federal Board of Revenue (FBR) has approached the National Accountability Bureau (NAB) to verify whether the bureau has deducted the withholding tax on account of payment made to the Washington-based asset recovery firm Broadsheet LLC.
Officials informed Propakistani that the FBR has written a letter to the NAB authorities here to point out the mistake made by the bureau. The NAB has caused revenue loss to the National exchequer due to non-deduction of withholding tax.
The NAB had made the payment of US$28.7 million in damages to Broadsheet after approval from the Cabinet.
Under Income Tax Ordinance 2001, withholding tax was required to be deducted on making payment to any non-resident person.
Tax authorities have inquired from the NAB authorities whether they have deducted the withholding tax as per law.