Badar Shahbaz
Citizen
ARY – Self professed moral policeman of media evades taxes
Pakistan is a country where the most corrupt of the lot can easily get away by simply blaming everyone else for the crimes that they are themselves guilty of. And ARY has mastered the art of this deception over the years. It is a fact that ARY has always been vocal against other channels, especially when it comes to Geo News, about tax evasions. They have repeatedly cried foul over Geo’s tax evasions.
However, what turns out to be the real case is that in reality, it is the ARY that has been gaming the Federal Board of Revenue (FBR) by molding various rules in their favor and getting the exemptions in taxes. They had been doing this for years but finally, someone in the FBR has decided to take the issue up. And ARY is in all sorts of trouble after this realization in the FBR.
On June 12, 2015, ARY Communications received a letter from the FBR, saying that it had been forging the details of its revenues in order to get exemptions in taxes.
First of all, since I do not want anybody to question the authenticity of the document, I am posting the details of the letter, the letter number, case number and the names of the addressee and the addressed.
The letter has been addressed to ARY Communications for cancellation of its tax exemptions
Now I would share the details of the message that the FBR has sent to the ARY Communications.
This is How ARY Communications has been cheating the tax collection.
Explanation of the text:
Here the Commissioner Inland Revenue has informed the ARY Communications that all their exemptions have been declared null and void ab-inition (never existed at all) and that the responsibility lies solely with ARY Communications.
It is pertinent to mention here that before putting this on this blog, Fasadi.pk, I tried to get this news aired on all the major channels of Pakistan including Geo News but none was ready to blow the whistle on a fellow news channel. While the viewers of these channels are constantly given lectures on the rules and regulations and the politicians are continuously bashed by them for evasion of taxes, they are not ready to take on their own brethren. This is how it goes in this industry.
According to the sources, the amount of money transferred by the ARY Communications was a staggering 10 billion rupees while the tax deductable from this amount was around Rs. 2 billion.
It is also important to note here that all these channels were together with each other on Bol issue. The ‘brotherhood’ was displayed only against a potential threat and in the case I mentioned above, the same secret brotherhood held a very important news from the public only because they didn’t want their monopoly to be broken and don’t want other channels to be exposing them. As the Urdu saying goes: “Iss hamaam mein sabhi nangay hain”, meaning ‘all are naked in the bath’.
Source : http://fasadi.pk/2015/06/ary-media-evades-taxes/
Pakistan is a country where the most corrupt of the lot can easily get away by simply blaming everyone else for the crimes that they are themselves guilty of. And ARY has mastered the art of this deception over the years. It is a fact that ARY has always been vocal against other channels, especially when it comes to Geo News, about tax evasions. They have repeatedly cried foul over Geo’s tax evasions.
However, what turns out to be the real case is that in reality, it is the ARY that has been gaming the Federal Board of Revenue (FBR) by molding various rules in their favor and getting the exemptions in taxes. They had been doing this for years but finally, someone in the FBR has decided to take the issue up. And ARY is in all sorts of trouble after this realization in the FBR.
On June 12, 2015, ARY Communications received a letter from the FBR, saying that it had been forging the details of its revenues in order to get exemptions in taxes.
First of all, since I do not want anybody to question the authenticity of the document, I am posting the details of the letter, the letter number, case number and the names of the addressee and the addressed.

The letter has been addressed to ARY Communications for cancellation of its tax exemptions
Now I would share the details of the message that the FBR has sent to the ARY Communications.

This is How ARY Communications has been cheating the tax collection.
Explanation of the text:
- The paragraph 2 says that the procedure of transferring the funds to a non-resident person was not followed by the ARY Communications.
- Paragraph 3 says that “the prescribed procedure has not been followed, rendering the subject Certificate illegal and void.”
- Then the 4th paragraph says that the article allowing exemptions does not allow blanket cover to all payments. “the payments made by M/s. ARY Communications (Pvt.) Ltd. to M/s. ARY Digital Networks FZ LLC are not “business profits” but payments for purchase of airtime. Thus, they are not covered under Article 7 of the Convention but at the most, could be considered as “technical fees” within the meaning of Article 13(3) of the Convention. The subject Certificate has therefore, been issued on incorrect basis.”
- And finally the 5th paragraph clearly states that the responsibility lies solely with the taxpayer i.e. ARY Communications.
Here the Commissioner Inland Revenue has informed the ARY Communications that all their exemptions have been declared null and void ab-inition (never existed at all) and that the responsibility lies solely with ARY Communications.
It is pertinent to mention here that before putting this on this blog, Fasadi.pk, I tried to get this news aired on all the major channels of Pakistan including Geo News but none was ready to blow the whistle on a fellow news channel. While the viewers of these channels are constantly given lectures on the rules and regulations and the politicians are continuously bashed by them for evasion of taxes, they are not ready to take on their own brethren. This is how it goes in this industry.
According to the sources, the amount of money transferred by the ARY Communications was a staggering 10 billion rupees while the tax deductable from this amount was around Rs. 2 billion.
It is also important to note here that all these channels were together with each other on Bol issue. The ‘brotherhood’ was displayed only against a potential threat and in the case I mentioned above, the same secret brotherhood held a very important news from the public only because they didn’t want their monopoly to be broken and don’t want other channels to be exposing them. As the Urdu saying goes: “Iss hamaam mein sabhi nangay hain”, meaning ‘all are naked in the bath’.
Source : http://fasadi.pk/2015/06/ary-media-evades-taxes/
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