ISLAMABAD: The Federal Board of Revenue (FBR) has asked its legal advisers to determine the legal status of the guarantee that Occidental Petroleum has extended with regard to FBR’s tax claims against it.
British Petroleum (BP) acquired the assets of Occidental Petroleum following which FBR had come up with the tax claims amounting to Rs2.4 billion against Occidental Petroleum.
Finance Secretary Waqar Masood and FBR Chairman Salman Siddique held a meeting on Tuesday with officials concerned to resolve the matter, a senior FBR official told The Express Tribune on Tuesday.
It was decided in the meeting that the final decision in this regard would be taken after receiving the sought legal advice. Sources said that the legal adviser is expected to submit his recommendation today (Wednesday). The United Energy Group (UEG), which is a Chinese company, has bought BP. The transfer of assets between BP and UEG after the two companies signed a contract of $775 million was blocked by FBR, which refused to accept the parent guarantee of Occidental Petroleum. Sources said that the case was in court now.
Earlier, Occidental Petroleum had submitted a parent guarantee to FBR, pledging that it would pay the tax if it lost the case.
Sources said that BP sought the help of the finance ministry to resolve the issue of its assets’ transfer to UEG. The finance ministry and FBR discussed the matter in Tuesday’s meeting and decided to seek the legal adviser’s opinion on it.
Published in The Express Tribune, August 17th, 2011.
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