Unlawful recovery: FBR delays disciplinary proceedings against taxmen

ISLAMABAD: The Federal Board of Revenue (FBR) has delayed disciplinary proceedings against two senior tax officials involved in unlawful recovery against a taxpayer through bank account attachment of a Karachi-based taxpayer.

The FBR seems to be reluctant to initiate disciplinary proceedings against two of its senior officers posted at Islamabad and Abbottabad despite vacation of stay order from Islamabad High Court (IHC) and confirmation of the Federal Tax Ombudsman (FTO) order by President Arif Alvi, in a case of unlawful recovery through bank attachment of a Karachi based taxpayer instead of actual tax defaulter of Haripur.

When contacted, tax lawyer Waheed Shahzad Butt who is representing the Karachi based taxpayer before IHC said that in the context of FTO’s jurisdiction, the FBR officials are constantly challenging the FTO’s orders for the last many years. It is high time that drastic steps have to be taken by FBR Chairman to take action against the officials violating the laws at their own sweet will and creating bad name for the FBR.

According to the taxpayer, the FBR officers posted at Haripur & RTO Abbottabad, without considering the fact that the complainant was assessed to tax at RTO Karachi against whom no tax demand was outstanding and without serving on him any prior notice, illegally attached his bank accounts and recovered Rs.1.714 million.

Waheed told this correspondence that President Dr Arif Alvi has confirmed the former FTO Mushtaq Sukhera order to recover Rs.0.450 cost and compensation personally from Commissioner & IRO, Haripur/Abbottabad and pay the same to the complainant taxpayer for illegal attachment of bank account.

Waheed further added that earlier President of Pakistan has fully endorsed the verdicts of former FTO in various cases such as in No. 66/2002-Rep (FTO) Law it states “sub-section (6) of section 14 of the 2000 Ordinance provides that if the FTO has reason to believe that any tax employee has acted in a manner warranting disciplinary proceedings against him he may refer the matter to the appropriate authority for necessary action.” In F.No.11/2003-Law (FTO), No. 12/2003-Rep(FTO)Law and No. 218/2004-Law(FTO), President has rejected the representations of the FBR employees against FTO with the directions that “the Chairman CBR shall institute an enquiry to find if any disciplinary action against CIT would be proper and justified”, “CBR shall take appropriate disciplinary action against the officials.”

Copyright Business Recorder, 2023