Court Summons Habib Metropolitan Bank Officials for Dodging FBR

The Special Judge Customs, Taxation, and Anti-smuggling Rawalpindi/Islamabad has issued summons to Habib Metropolitan Bank officials for dodging the tax authorities. The accused, including the Manager of Operations Metropolitan Bank, appeared before the court on June 21, 2022.

The five accused were holding money on behalf of a taxpayer company-in-default, M/s Tahir Builders (Private) Limited. Income tax demand of Rs. 267.9 million was outstanding and recoverable against the taxpayer because of default u/s 122(5A) of the Income Tax Ordinance, 2001.

The recovery notice u/s 140 read with rule 69 of Income Tax Rules, 2022, was served to Manager Operations Habib Metropolitan Bank, on 6 June 2022, for the recovery of tax dues. However, the bank officials did not debit block the taxpayer’s bank account maintained at their branch.

The Federal Board of Revenue (FBR) has said that the bank officials, in connivance with the taxpayer, transferred an amount of Rs. 20.05 million from their account on the same day, i.e., 6 June 2022. This violated notice u/s 140 of the Income Tax Ordinance 2001.

Habib Metropolitan Bank Limited and Chief Compliance Officer were fully aware of the fact and willfully and knowingly aided and abetted the accused officials in committing the offenses. They are liable to be prosecuted under sections 196 and 199 of the Income Tax Ordinance 2001.

The Federal Board of Revenue (FBR) has withdrawn the notice under section 140 of the income tax ordinance 2001 against M/s Tahir Builders. The information sought to recover Rs. 267.9 million from Mr. Tahir’s bank account, which was granted a stay by an appellate tribunal.