KARACHI: Pakistan Petroleum Limited (PPL) has paid and adjusted Rs27.609 billion in income tax demand created by the tax authorities for 15 years, the company revealed in its annual report on Friday.
“The tax authorities have amended the assessments of the company for the tax years 2003 to 2018, raising an aggregate demand of Rs29.384 billion; which primarily relates to rate issue, depletion allowance, decommissioning cost and tax credits under sections 65A, 65B and 65E of the Income Tax Ordinance, 2001,” PPL said in the report. “The company has paid/adjusted an amount of Rs27.609 billion out of the said aggregate demand.”
“The company as a matter of prudence, has continued to provide for tax liabilities in respect of tax rates, depletion allowances and tax credits under sections 65A, 65B and 65E relating to Agreement Areas in the books of accounts,” the report said. “In case the appeals relating to the said issues are decided in favour of the company, an amount of Rs20.187 billion (2018: Rs18.197 billion) will be credited to the profit or loss for that year.”