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Hubco's clarification

RECORDER REPORT

KARACHI: The Hub Power Company (Hubco) has clarified press reports (not published in Business Recorder) with regard to the company's tax refund under an ECC decision.

In a statement, the spokesman of Hubco on Monday said recently newspaper reports suggested that the tax authorities had rightly assessed the Hubco tax and as a result of the ECC decision, refunded the amount.

Denying this fact, the company said these reports are incorrect. In 1998, it explained, the tax authorities raised assessment in the amount of Rs.1.7 billion and under the threat of freezing its bank accounts recovered the same. It is the company's position that these assessments were unjustifiable and unwarranted. The company appealed against these assessments and the Income Tax Appellant Tribunal supported the company's view.

Notwithstanding this, refunds were not forthcoming. The matter was referred to the ECC and only subsequently have the tax authorities refunded Rs.378 million while Rs.589 million remains outstanding. The company continues to seek full refunds to which it is entitled under the law.