Delaying tactics in refunds: Taxpayers being forced to withdraw complaints filed with FTO: experts

ISLAMABAD: Tax advisers have reported incidents where tax officials are allegedly pressurizing taxpayers to withdraw complaints filed before the Federal Tax Ombudsman (FTO) against their intentional delaying tactics in issuance of refunds.

These refunds were due on account of appeal order of the Tribunal against which no reference was filed before the Lahore High Court and the appeal order had attained finality a year ago.

The tax experts explained that creation of Refund Zone in the field formations on the pretext of facilitating the taxpayers has proved to a ploy to create further hurdles in obtaining income tax refunds. Since creation of these specialized zone either further hurdles or pick and choose has become the policy.

When contacted Miss Sofia, Income Tax Practitioner/authorized representative of a Lahore based taxpayer being assessed at a Large Taxpayer Office (LTO) explained that when in follow up of pending refund claim she met the Additional Commissioner with whom file was stuck for a week he required that he will sign only if the complaint filed by the taxpayer before FTO is withdrawn. He warned that if complaint is not withdrawn and FTO holds that delay is maladministration then he will file representation before the President and the taxpayer will not get refund for at least one year.

Sofia argued that the earlier partial refund was issued by the Department on filing writ petition and the curtailment of refund was disapproved by the Appellate Tribunal with the direction to issue balance refund with compensation for delay within 30 days. The appeal order was accepted by the Department and no reference was filed before the High Court. Thereafter four reminders were filed for issuance of refunds apart from dozens of follow up visits but all in vain. In these compelling circumstances compliant had to be filed and the FTO had called for report.

On calling for report the DCIR processed the refund claim in the IRIS and sought administrative approval of the Commissioner through proper channel and the Additional Commissioner was holding file for a week when the AR of the taxpayer met him and the Additional Commissioner has pressurized her to withdraw compliant otherwise refund will be got delayed by filing representation to the President which takes months to decide.

Sofia claimed that this is clearly blackmailing apart from the manifestation of ulterior motives and requested the Chairman FBR to take notice of such further maladministration and misconduct which mars the image of the Department.

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