Mari Energies concludes tax deposit on 800% bonus shares issuance

Mari Energies Limited has successfully concluded the necessary measures for recovery and deposit of tax relating to the issuance of 800% bonus shares as required under the Income Tax Ordinance, 2001. 

The company said in a filing at the Pakistan Stock Exchange (PSX) on Tuesday that this move was pursuant to the Honourable Islamabad High Court. 

As part of the tax recovery mechanism, the company initially retained 10% of the bonus shares for shareholders classified as filers, and 20% for non-filers. Their retained shares were disposed of, and the proceeds were deposited with the FBR and adjusted against the tax obligations of the relevant shareholders. 

“In instances where the retained shares were insufficient to satisfy the pertinent tax obligations, the company was authorised by the court to retain  additional shares under lien (10% for filers and 20% for non-filers) and recently authorised  to dispose of the shares under lien to the extent of the tax liability,” read the notice. 

Accordingly, lien-marked bonus shares belonging to shareholders who did not fulfil their tax payment obligations have been proportionately disposed of to satisfy their individual tax liabilities and a uniform weighted average sale price was applied across all such transactions, it added. 

These supplementary disposals amounted to approximately 0.38% of the total bonus issue for filers and about 0.76% for non-filers. The proceeds from these transactions, representing the recovered tax, are being deposited with the FBR. 

The E&P giant said that the remaining bonus shares have been credited to the respective shareholders’ accounts with the Central Depository Company (CDC).