FBR forms task force to devise SOP: Rs 130 billion stuck-up arrears collection

The Federal Board of Revenue (FBR) has constituted a task force on stuck-up arrears, amounting to nearly Rs 130 billion in courts, for devising a standing operating procedure (SOP) for early disposal of cases at the level of the judicial forums.
Sources told Business Recorder here on Friday that the FBR task force on stuck-up arrears, comprising Ansar Javed, Ijaz Hussain and Muhammad Raza Baqir, will examine the matter and issue an SOP on the basis of which all Chief Commissioners of LTUs/RTOs would pursue cases in the courts. The task force would also review the progress of the field formations.
According to sources, the Board had directed all Chief Commissioners Inland Revenue to immediately apply for vacation of stay orders in tax-related cases where 6 months have passed after the grant of these orders. One of the reasons of revenue shortfall was stuck-up arrears in different court cases. Out of total stuck-up arrears, a major chunk is blocked in the courts.
It is estimated that arrears to the tune of Rs 130 billion are stuck up in litigation. Tax authorities have taken serious notice of the situation and devised a strategy to expedite clearance of pending cases where 6 months have passed after expiry of stay orders. It has been decided that all Chief Commissioners would approach the courts, through their legal counsel, for vacation of stay orders at all levels of courts, including High Court and Supreme Court of Pakistan.
It has been noted that the courts have given stay orders in a large number of cases and a strategy needs to be implemented to vacate such stay orders to avoid any kind of contempt proceedings. Sources said that the Chief Commissioners would approach the courts through their lawyers in cases where 6 months have passed since grant of stay orders by the courts.
It was sated that the stay order automatically expires after six months, but the FBR should apply to courts for vacation of such stay orders, keeping in view the observations of the Law and Justice Division. The Law Division has asked the government departments to properly apply to courts for vacation of stay orders. In order to avoid any kind of contempt proceedings, the FBR will formally write to courts to vacate stay order where six months have passed. In this regard, due legal process would be followed at the level of the judicial fora. If the FBR would be able to successfully get such stay orders vacated in the courts, it would be instrumental in improving revenue collection during the remaining months of 2010-11, sources said.