Nueplex Cinemas came under the line of heavy fire as Federal Board of Revenue (FBR) conducted a formal raid in the offices of Nue Multiplex and Entertainment Company and confiscated its records on intuition of evasion of big chunk of money in income tax by exaggerating its expenditures.
As per the sources in FBR headquarters, officials of Intelligence and Investigation wing of the Inland Revenue Service of FBR conducted the search of cinema premises. Sources of FBR stated that the intelligence wing took the action under Section 175 of the Income Tax Ordinance, 2001, which allows tax authorities to search the premises of the company. They also said that the tax authorities took all the mandatory approvals before raiding the company’s office.
Several reports indicate that the expenses showed by the company were very high, which resulted in low profits when compared to other market players of the same line. To be more specific, the company inflated its expenses in a bid to pay less income tax.
The Nue Multiplex and Entertainment Company is engaged in the provision of entertainment services and has five cinemas, totaling 1,100 seats and boasts three of the country’s biggest silver screens. Many analysts believe that the news has spread negative sentiments among customers and the company will likely experience drop in the revenue in the coming few months.
“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. Nevertheless, he denied that FBR raided and impounded documents and computer.
It is yet to be determined if Nue Multiplex and Entertainment Company will be able to get itself out of the setback and gets its name off the record. In any case, we’ll keep a track on the story to keep our readers updated.