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ISLAMABAD: Federal Tax Ombudsman (FTO) has exposed an illegal tax recovery by the Federal Board of Revenue (FBR) through the coercive measure of attachment of bank accounts of Rawalpindi Medical University, (RMU) Rawalpindi.

According to an order issued by the FTO against the FBR on Friday, the complainant (RMU) Rawalpindi filed complaint against unlawful recovery of Rs64,452,753 for Tax Year 2022 through attachment of bank accounts on May 22, 2023.

Some of the facts narrated showed that the assessment and recovery processes have been made without following law and ascertaining nature of various transactions. This arbitrary, perverse and unlawful action not only created serious hardships for the taxpayer but also exposed incompetence of the tax authorities involved. Such actions clearly constitute maladministration.

“It is observed that many legal and factual mistakes have been made by the tax officer while finalizing the order and making subsequent recovery through coercive measures by attachment of bank account. The record was not properly scrutinized and assessment was made and order passed in a hurry,” FTO order said.

The findings of the FTO office revealed that the assessment made together with the recovery process have been completed in undue haste and without following due process of law and laid down procedure.

This kind of attitude is contrary to law and rules and laid down procedure and whole process is found perverse, arbitrary, oppressive showing incompetence, inefficiency of all the officers involved in the discharge of their duties and responsibilities. All of these acts of omission or commission squarely fall under maladministration under the FTO Ordinance, 2000.

FTO has recommended the FBR to direct the CIR concerned to revisit the assessment order under section 122A and ensure completion of reassessment under his supervision on merits after providing proper opportunity of hearing within 30 days.

The complainant is also advised to join proceedings and provide necessary documents for completion of reassessment proceedings, FTO added.

Copyright Business Recorder, 2023

Comments

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Saba Umer Jul 22, 2023 08:22pm
Horrible. FBR is blackmailing innocent citizens to fulfil its tax targets while saving the influential people from paying tax.
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BS Jul 22, 2023 11:00pm
What action did the FTO proposed against the FBR officers involved. Giving relief to tax payers is not enough, a complete investigation should be done. However, punishment should be given as FTO had already ruled that the order passed by them is unlawful.
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Amer Rafique Khan Jul 23, 2023 06:07am
It is like FBR is local goon and take "loot" any amount of money from any bank a/c it may please!
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Shaukat Hayat Jul 23, 2023 06:41am
FTO's order has no legal validity as it has no jurisdiction to deliver judgement on the assessment-telated matters..
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Bloody Civilian Jul 23, 2023 11:06am
Bank account attachment is a tool for blackmailing of law abiding taxpayers to extort bribes. Further, it is also used to meet recovery/tax collection targets near end of fiscal year. Such actions be FBR put survival of already heavily taxed SMEs and industry at severe risk due to cash flow issues. Due to this, bank accounts must be kept empty as much as possible to avoid FBR blackmailing and extortion. FBR must not have access to any personal and/or corporate bank account till a final decision on any case by superior judiciary.
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Bloody Civilian Jul 23, 2023 11:07am
FTO must take strictest possible action and summarily dismiss all FBR employees without any benefits to set an example. Such coercion and blackmailing by FBR cannot be tolerated.
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Bloody Civilian Jul 23, 2023 11:08am
@Shaukat Hayat, FTO has full jurisdiction even on procedural matters.
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