Wednesday, 3 August 2016

Test Blog

Punjab Revenue Authority has been making efforts to bring Internet giants in its fiscal network and previously issued notices to Facebook, Google, DailyMotion to get themselves registered in Lahore and pay taxes on income that make Punjab.
Facebook, surprisingly, sent a reply to the ARP through a letter and said:
Registration in the PRA does not apply to us because they are not taxable in the country. We are providing our online services in Ireland, where it operates the multinational.
Moreover, according to the PRA act, advertisers – Pakistani those individuals and companies that advertise through Facebook – are subject to sales tax. A section of the ARP Act says:
When a taxable service originates from outside Pakistan but is received or terminates in the Punjab, the recipient of that service will be responsible for paying the tax to the government.
ARP is essentially looking for a way to tax the Pakistani who advertise on Facebook, however, advertisers can not know without the help of Facebook.
Facebook, while playing tactfully, not even close to helping ARP because it does not want to increase the cost of advertising on its platform by exposing the list of advertisers as doing so advertising spending on its website it will decrease.
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