FBR compiles list of blacklisted companies, units

FBR compiles list of blacklisted companies, unitsThe Federal Board of Revenue (FBR) has compiled an updated list of 3,500 to 4,000 blacklisted companies and suspected units to block input tax credit and sales tax refunds of units, claiming refunds on the invoices of blacklisted suppliers.
Sources told Business Recorder on Monday that the list of 3,500 to 4000 blacklisted companies, suspected units and suspended entities have been dispatched to the Large Taxpayers Units and Regional Tax Offices (RTOs) for verification purposes. The LTUsRTOs would verify whether the refunds and input tax adjustment claimed on the basis of these units should be stopped. Before blocking refunds, it is necessary to verify the names of the blacklisted and suspected companies.
The field formations would confirm about the authenticity of the lists and subsequently submit the data to the FBR. It has been advised to the taxpayers to check the list of blacklisted companies available on the FBR website to ensure that they have not made purchases from such companies. It would also help the traders and industry to avoid business transactions with these suspected units.
It is worth mentioning that the board had directed the blacklisted companies, who are electronically filing sales tax returns, to remove objections for becoming compliant taxpayers to obtain refundsinput tax adjustments. The FBR had not imposed a ban on E-enrolment of the blacklisted companies with the FBR Web-portal. The blacklisted companies have also not been restrained from filing of returns, electronically. However, the FBR has prominently displayed the names blacklisted units to caution the business community to avoid transactions with such suspected companies. The business community would avoid making purchases from suspected units due to regular updation of data by the FBR.
The FBR had also dispatched emails to the E-enrolled blacklisted companies to approach their respective Regional Tax Office to clarify their position to the department and remove objections for deleting their names from the “list of blacklisted units”. These blacklisted companies can remove the objections which form basis for stopping them from claiming input tax adjustments. Even if they are electronically enrolled with the FBR Web Portal, they are not eligible to claim refund or adjustments or any another tax facility.

Copyright Business Recorder, 2009