FBR seizes records of Nueplex Cinemas during raid

Published: January 4, 2017
Authorities suspect company was evading taxes. PHOTO: NUEPLEX FACEBOOK PAGE

Authorities suspect company was evading taxes. PHOTO: NUEPLEX FACEBOOK PAGE

ISLAMABAD: Tax authorities have raided the offices of Nue Multiplex and Entertainment Company and impounded its records on suspicion of evasion of millions of rupees in income tax by overstating expenditures and allegedly concealing income.

Officers of the Intelligence and Investigation wing of the Inland Revenue Service of Federal Board of Revenue searched the premises of the company, according to sources in the FBR headquarters.

FBR sends inspectors to a firm for ‘advance tax receipt’

The Nue Multiplex and Entertainment Company is engaged in the business of provision of entertainment services and has five theatres, totalling 1,100 seats and is home to three of the country’s largest silver screens.

“The FBR officers had come to my office and sought some information, which we provided to them,” said Mirza Muhammad Jamil Baig, a shareholder in the company, told The Express Tribune.

He, however, denied that the FBR conducted a formal raid and impounded documents and computers.

Jamil Baig owns 60 per cent shares in the company, followed by Mirza Uzma Jamil who has a 35 per cent stake and Muhammad Tariq Baig who owns the remaining five per cent of the shares.

FBR sources stated that the intelligence wing took the action under Section 175 of the Income Tax Ordinance, 2001, which allows the authorities to enter and search premises. They said the field office took all necessary approvals before conducting the raid.

Renowned eatery brand accused of tax evasion

According to the initial inquiry by the tax authorities, the company showed huge losses during the first four years of business, amounting to Rs143.6 million. It showed the total investment at only Rs200,000, which is beyond comprehension, given the size and quality of infrastructure, they added. The sources further said that the taxpayer has also inflated its expenses to evade taxes.

Sources said that the expenses shown by the taxpayer were very high, which resulted in relatively low profits compared with other business of the same line.

Published in The Express Tribune, January 4th, 2017.

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Reader Comments (7)

  • Khan A
    Jan 4, 2017 - 10:00AM

    Always wondered why they sold tickets on cash only basis.Recommend

  • iRonMan!
    Jan 4, 2017 - 10:12AM

    Does FBR ever raid politicians – in power specially? ..the PM or his family? Just askin’Recommend

  • Shaharyar
    Jan 4, 2017 - 10:16AM

    Investment of only 200,000. Did i read it right or is it a typo?Recommend

  • Prabhjyot singh madan
    Jan 4, 2017 - 11:30AM

    I am an Indian and I have 5 lakh Indian rupees in investments, that is equivalent to 8 lakh Pakistani rupees, can I open a complex there ? Pleassssse. I can dole in a couple more with my friends help. The owners are the true heroes of Pakistan. I need their guidance.Rab rakhaRecommend

  • BrainBro
    Jan 4, 2017 - 12:44PM

    FBR needs its cut. They have been here for years, and FBR only now realized their accounts. Somebody did not get his commission on time.Recommend

  • Auditor
    Jan 4, 2017 - 1:41PM

    Who were their external auditors ?Recommend

  • abood
    Jan 4, 2017 - 6:59PM

    @singh madan.if it was 200k required for opening a cinemaa.we would have one at every corner of the street.they have comitted a fraud and are tax evaders.Recommend

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