High court orders lien on MARI's bonus shares to ensure tax recovery

October 02, 2024 (MLN): Due to fluctuations in market price since the book closure date of September 19, 2024, there is a risk that Mari Petroleum Company Limited (PSX: MARI) may not fully recover the tax through bonus shares sales alone for those shareholders who do not remit money to the Company.

To address this, the Islamabad High Court has instructed the Central Depository Company (CDC) to place a lien on an additional 10% of bonus shares for filers and 20% for non-filers, in addition to the already withheld shares.

This is to ensure full tax recovery under the Income Tax Ordinance.

Upon full recovery of the withholding tax, either received through payment by the respective shareholder(s) or through sale of the withheld bonus shares, the balance shares shall be immediately released to the shareholders.

Accordingly, MARI has requested the shareholders again to deposit their respective tax amounts, by October 15, 2024.

To recall, MARI informed that the 800% bonus issue was dispatched/credited to both physical and CDC shareholders of the Company on September 27, 2024.

These shares were dispatched after withholding 10% (for filers) and 20% (for non-filers) of the bonus shares to cover the withholding tax liability (which is full and final) on bonus shares based on the day-end price on the first day of the book closure.

The shareholders were requested to pay the withheld income tax to the Company, failing which will enable the company to dispose of the withheld bonus shares to recover the withholding tax liability on behalf of the shareholders.

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