FBR has raided the Nueplex Cinemas offices commonly known as the Nue Multiplex and Entertainment Company today.
It is an emerging case of tax evasion. Tax authorities have impounded the company’s records on the grounds of alleged tax evasion case. They seem to think that the company has avoided payments of millions of rupees in income tax. They have been accused of concealing income and overstating expenditures.
According to FBR, personnel of the Intelligence and Investigation wing of the Inland Revenue Service of Federal Board of Revenue conducted an investigation of the company’s premises.
The company holds a massive business of provision of entertainment and has around 5 cinemas, comprising of 1100 seats in total. Nueplex cinemas are one of the Pakistan’s largest silver screens today.
Mirza Muhammad Jamil Baig, a shareholder in the company told The Express Tribune, “The FBR officers had come to my office and sought some information, which we provided to them.”
However, he has denied any instance of a particular raid and seizure of important documents and assets by FBR.
The shareholder owns around 60% of the company’s shares.
FBR further tells that the intelligence authority took the action of the investigation under Section 175 of the Income Tax Ordinance, 2001. It allows the authorities to conduct an official investigation of alleged premises. All the necessary approvals of conduction a formal raid have been thoroughly taken, though.
The tax authorities revealed in the reports that the company faced massive losses during their first 4 years of operation. The financial losses amassed up to Rs. 143.6 million.
The report further revealed the investment by the company made around Rs. 200,000, which is beyond sense provided the standards, quality, and infrastructure of the cinema houses operated by the company. This all leads to conjectures about the company’s credibility of doing business faithfully and under the law of Pakistan.
The company presented their recorded expenses which were significantly high and also showed low profits. Having low profits and still being the leading cinema in the country gives rise to further suspicion.
If the investigation reveals a further truth, it will be very shocking of Nueplex Cinemas to go about illegal ways in offering their services.