Bank accounts: FBR's recovery rules found to be arbitrary: LHC

Lahore High Court (LHC) Thursday heard the petitions filed against arbitrary recovery proceedings initiated by the Federal Board of Revenue (FBR) through attachment of bank accounts of taxpayers without intimating them.

The directions to the FBR by LHC were to structure the recovery proceedings so as the taxpayer is aware of everything.

It is learnt that the FBR presented the draft of the amended recovery rules before the Lahore High Court. The said rules were examined by the court and were found to be arbitrary as not only it was proposed to attach bank lockers but also the provisions of section 138 of the Income Tax Ordinance were made redundant by the FBR.

The section 138 deals with the intimation to the taxpayers that recovery proceedings are being initiated against them.