Refund relief given by appellate forums: FTO orders probe against FBR, its wing for violation

ISLAMABAD: The Federal Tax Ombudsman (FTO) has ordered an investigation against the Federal Board of Revenue (FBR), Large Taxpayer Office for open violation of binding orders passed by the higher/superior judiciary in tax refund-related matters when there is direct relief allowed by appellate forums.

It is reliably learnt that the office of the FTO had issued notice to Secretary Revenue Division and Chief Commissioner Inland Revenue, LTO to submit comments on or before September 16, 2024 on the allegations contained in the complaints moved against LTO, tax employees for their maltreatment with the state owned taxpayer.

When contacted, tax lawyer Waheed Shahzad Butt informed that the FTO will probe the allegations of mal-administration as to why the FBR tax employees are allegedly involved in contempt of orders passed by higher/superior judiciary governing refunds. There is an urgent need to redress this crucial issue; i.e., working of tax employee of FBR to play with the precious resources of the national exchequer (taxpayer’s money) under the umbrella of powers available with IRS functionaries and ultimate wastage of public money in futile litigation either by passing patently illegal orders or retaining taxpayer’s money in the shape of refunds.

Waheed further added that a new mode has been adopted by the FBR field formations to block refunds, which is a blatant violation of constitutional rights. Recent episode at FBR Lahore offices and intervention by the FIA authorities is an eye opener for the new Chairman FBR. Such blatant moves by FBR employees are creating an environment of distrust and financial strain for compliant taxpayers.

Copyright Business Recorder, 2024