The Federal Board of Revenue (FBR) has approached the NationalAccountability Bureau (NAB) to verify whether the bureau has deducted thewithholding tax on account of payment made to the Washington-based assetrecovery firm Broadsheet LLC.

Officials informed Propakistani that the FBR has written a letter to theNAB authorities here to point out the mistake made by the bureau. The NABhas caused revenue loss to the National exchequer due to non-deduction ofwithholding tax.

The NAB had made the payment of US$28.7 million in damages to Broadsheetafter approval from the Cabinet.

Under Income Tax Ordinance 2001, withholding tax was required to bededucted on making payment to any non-resident person.

Tax authorities have inquired from the NAB authorities whether they havededucted the withholding tax as per law.

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