Tax authorities sent Rs. 13 million tax notice to a famous Youtube prankster Nadir Ali, who owns a channel named “P 4 Pakao”.
‘P for Pakao’ features short videos of Nadir and his team pulling pranks on unsuspecting people has more than 820 million views in total. The channel has more than 3 million subscribers and is one of the largest online channels in Pakistan.
The Federal Board of Revenue (FBR) suspected him of concealing his income and afterwards launched an investigation against him. The matter has now been referred to the Chief Commissioner Inland Revenue Tax Office (RTO)-III in Karachi for recovery of the tax evaded.
According to the Tax department, many notices have been served to the YouTuber, but he has not replied to any of them. As the case has been sent, he can now appeal before the Commissioner Appeals in the RTO office.
Although Nadir Ali denied having not responded to the FBR and said that he had replied in person through his lawyer and filed the appeal for an extension in the time to submit a reply, which was approved.
According to the FBR investigation, Nadir’s tax returns do not contain a full record of his incomes and their doubts were confirmed when they contacted YouTube to learn about his actual income.
As per FBR sources, he earned Rs. 2.186 million in the year 2017, Rs. 28.335 million in 2018 and 46.762 million in 2019, information is taken from YouTube.
Nadir received more than Rs10 million of foreign exchange during the year on which exemption was claimed without furnishing proof. He also maintained a bank account, which he did not declare in the wealth statement.
The case marks a first milestone in the FBR’s history that they have gone after online content creators. All YouTubers, Vloggers and content creators who are making high earning must take this as a warning sign and start paying tax.
A senior official of the FBR said, “People need to realize that revenues generated from online content is taxable and records need to be maintained for five years and stated in their annual return filings.”
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