FBR Transfers Jurisdiction of Three Sugar Mills Ahead of Crushing Season

The Federal Board of Revenue (FBR) has quietly transferred jurisdiction of three important sugar mills from a larger to a smaller tax office ahead of the sugarcane crushing season.  Sources said that FBR has transferred/assigned the jurisdiction of the Adam Sugar Mills Limited, Hamza Sugar Mills Limited and Madina Sugar Mills Limited to Zone-II CTO Karachi from Zone-1 LTO Karachi.  The head offices of these mills are in Karachi, but their mills are in different cities. Adam Sugar Mills is in Chishtian district Bahawalnagar, Hamza Sugar Mills in Rahim Yar Khan and Madina Sugar Mills is in Chiniot, Punjab.  Normally, Large Taxpayer offices of FBR deal with tax returns or exemptions related matters of high turnover companies whereas corporate tax offices see sector specific companies.  The law allows FBR to transfer the jurisdiction of companies after completing codal formalities but transferring jurisdiction before the sugarcane crushing season raises concerns, sources added.  Reportedly, the Sindh High Court in its decision has also bound FBR to take consent of taxpayers before transferring the jurisdiction. When approached, FBR spokesperson claimed that jurisdiction has been transferred due to load management only.