ISLAMABAD - Transparency International Pakistan [TIP] on Sunday asked the National Accountability Bureau [NAB] to look into a complaint it had received alleging that the K-Electric had evaded income tax and that it had not deposited GST collected from the consumers.

The TIP received the complaint of misdeclaration by K-Electric of Karachi wherein the complainant has raised five allegations.

“After receiving the complaint the Transparency International Pakistan requested Chairman NAB to kindly look into the complaint and if the allegations are found correct, take necessary action under NAO to recover the said amount along with interest and penalties under the law and to take necessary action against all those officers involved in corrupt practices,” said a statement.

According to details, the first allegation said that according to the latest tax return submitted in FBR by K-Electric, in the income tax for the year 2013, the sales is stated to be Rs. 112,165,872,000. But according to the annual report published by K-Electric the revenue for 2013 is Rs. 188,999,000,000. The second allegation said that there is a shortfall of Rs 76,833,128,000 in actual revenue and the reported revenue in the tax return for the year 2013. The third allegations aid that 16% of GST on the income not reported amounts to Rs. 12,293,300,480, which has not been paid to FBR According to the fourth allegations, income tax evaded on Rs. 76,833,128,000 if taken at the rate of 35% is Rs. 26,891,594,800. The last allegation says that more than 40% registered industrial consumers of K-Electric, have demanded input refunds of sales tax, whereas no sales tax has been deposited in FBR on their behalf by K-Electric.

The complainant has also alleged that the revenue short fall between that declared in their tax returns and that reported in the annual reports for the years 2009, 2011, 2012 & 2013 is Rs 213 billion and the GST and income tax evaded comes to about Rs. 111 billion.