Mari Petroleum Obtains Court Approval to Hold on to More Bonus Shares to Recover Taxes

Mari Petroleum Company Ltd (PSX: MARI) has secured legal backing from the Islamabad High Court (IHC) to recover full withholding tax from its recent issuance of 800 percent bonus shares. Following a fluctuation in market prices since the book closure on September 19, 2024, the company found that selling the withheld bonus shares would not fully cover the required amount from non-compliant shareholders who have not paid their taxes. To resolve this, the IHC has directed the Central Depository Company (CDC) to place a lien on an additional 10 percent bonus shares for filers and 20 percent for non-filers. Mari sees this as the most effective way to ensure full recovery of the withholding tax under Section 236Z of the Income Tax Ordinance, 2001. Once the tax is completely recovered, either through payment by the shareholders or the sale of the withheld shares, the remaining shares will be released to the shareholders. MPCL had earlier informed shareholders of outright selling the bonus shares to recover taxes. The company has now reiterated that shareholders must deposit their due taxes by October 15, 2024, to avoid complications.