Karachi, March 2, 2025 – The Federal Board of Revenue (FBR) has issued a tax demand of Rs 1.22 billion against Bank Alfalah for multiple tax years, citing various discrepancies in tax payments. According to the 2024 annual report, Bank Alfalah confirmed that its income tax assessments have been finalized up to and including the tax year 2024. However, for tax years 2008, 2014, 2017, 2019, and 2021 to 2024, the FBR raised concerns over issues such as the default in payment of Workers Welfare Fund (WWF), allocation of expenses to dividend and capital gains, and the classification of dividend income from mutual funds. Additionally, the disallowance of leasehold improvements contributed to the total tax demand of Rs 1,217.274 million. Bank Alfalah has filed an appeal, which is currently pending before the Tribunal. The bank’s management remains confident that the ruling will be in its favor, and thus, no provision has been made for this tax liability in its financial statements. In another case, Bank Alfalah received tax orders from a provincial tax authority for the period between July 2011 and December 2020. The tax authority demanded sales tax on banking services and a penalty amounting to Rs 763.312 million (excluding default surcharge), citing disallowed exemptions and alleged short payments. Appeals against these orders are pending before the Commissioner Appeals…