Tax from Google, FB: HC issues contempt of court rule against NBR chief

The High Court yesterday issued contempt of court rule against the NBR chairman for not complying with its verdict in 2020, which ordered to submit a report on collection of taxes from Google, Facebook, YouTube, Yahoo, Amazon and other web-based companies before it every six months.

In the rule, the HC asked National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem to explain in four weeks contempt of court proceedings should not be drawn against him for violating the judgement and order issued by this court on November 8, 2020.

The HC bench of Justice JBM Hassan and Justice Razik-Al-Jalil issued the rule following a contempt of court petition filed by Supreme Court lawyers Mohammad Humaun Kabir Pallob and Mohammad Kawsar on behalf of rights organisation -- Law and Life Foundation Trust.

Earlier on May 19, the lawyers sent a legal notice to Abu Hena Md Rahmatul Muneem asking him to comply with the HC directives in 10 days.

Following a writ petition moved by them, the HC on November 8, 2020 delivered the verdict saying that "Google, Facebook, YouTube, Yahoo, Amazon and other internet-based companies not paying income tax is unfortunate."

The companies must complete their Value Added Tax (VAT) registration with the NBR, which is mandatory under the Value Added Tax and Supplementary Duty Act, 2012. They are bound to submit income tax returns to the NBR under the Income-Tax Ordinance, 1984.

While making the observations, the HC ordered the government to immediately take necessary steps to collect all the due appropriate taxes, VAT and other relevant charges from the revenues earned by the companies and also directed the NBR chairman to submit a report on collection of taxes from the companies after every six months.