Government not to succumb to tax blackmail
ISLAMABAD: A government spokesman has strongly deplored the vilification campaign launched by the Jang/The News Group against the government on alleged raid by the FIA, Customs or Income Tax officials at the premises of Jang Rawalpindi.
The spokesman on Tuesday said that no raid was conducted at all by any government agency at the offices of the Jang Rawalpindi. In fact, the Income Tax officials are conducting routine examination of the accounts and income of the Jang/The News Group.
The spokesman said, "major case of tax evasion to the tune of Rs 2000 million by the Jang/The News Group has been discovered by the Income Tax Department." According to details, the Jang/The News Group did not declare major properties like a big building in Blue Area Islamabad and several other properties throughout Pakistan and concealed correct income from sale proceeds of its products.
"There is a huge difference between the sales of the group declared to the Income Tax Department and the Audit Bureau of Circulation (ABC). A glaring instance of concealment of income tax is that the Jang/The News Group declared net sales of Rs 78 crores approximately to the income tax authorities. But for obtaining huge quantities of news import, they declared gross sales of over Rs 200 crores and net sales of Rs 124 crores to the Audit Bureau for assessment year 1996-97," the spokesman said.
"Another instance of concealment of income tax for the assessment year 1995-96 was that the Jang/The News Group showed Rs 68 crores as net sales to the income tax department but declared gross sales worth over Rs 200 crores and net sales of Rs 124 crores to the ABC." Similarly, for assessment year 1994-95, the Group declared net sales of Rs 69 crores approximately to the income tax department but declared nets sales of Rs 115 crores to the ABC, the statement said.
"The fraudulent figures declared by Jang/The News Group in previous years were again repeated in the assessment year 1997-98, when the group declared net sales of Rs 126 crores to the income tax department but the figures declared to the ABC were Rs 198 crores. "Investigation by the income tax authorities found evidence that sales to the tune of Rs 2000 million have been suppressed by the Group in a period of four years i.e. 1994-97.
"The Central Board of Revenue had directed the Income Tax and the Wealth Tax authorities to initiate action for recovery of taxes due to the national exchequer. The managing company of Jang Group has been issued show cause notice for evasion of income/wealth tax. "In order to evade huge amount of taxes, the Jang/The News Group has launched a malicious campaign against the government of alleged victimisation of the group."
The spokesman said, "the government believes in complete freedom of press but would not let the law of the land dither from collecting taxes from anyone, including the major newspaper group like Jang/The News." "The tax authorities would complete its examination of the accounts of the Jang/The News. They are very much entitled under the law to visit the offices of Jang/The News as and when necessary. It should be known to every tax evader that the government would not succumb to any blackmail tactics of any quarter," the spokesman added.
Jang contradicts govt statement
LAHORE: A spokesman of the Jang group has contradicted the statement issued by the government on Tuesday and has termed it baseless. The spokesman said the group was looking into the statement and other comments in local and international media and would soon release details in this regard.