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ISLAMABAD: The Federal Tax Ombudsman (FTO) has summoned Member Inland Revenue (Operations) Federal Board of Revenue and Chief Commissioner-IR of the Large Taxpayer Office (LTO), Islamabad for unlawful tax recovery from Islamabad Electric Supply Company (IESCO) through attachment of its bank account.

It is reliably learnt that the office of the FTO had issued hearing notice to Secretary Revenue Division, Member IR-Operations and Chief CIR, LTO Islamabad to appear for hearing on August 4, 2023 with all the record and witnesses, against the allegations contained in a complaint filed by the IESCO.

The FTO will probe the allegations of maladministration as to why the LTO functionaries are allegedly involved in unduly harassing the taxpayers (IESCO) under the garb of powers available with IRS functionaries to recover taxes without lawful authority.

When contacted tax lawyer Khurram Shahzad informed that complaint has been lodged against tax employees posted at Zone-II, LTO Islamabad and former chief commissioner LTO for alleged illegal recovery of huge funds from the bank accounts of IESCO without following due process of law and in extreme contempt of orders passed by Islamabad High Court, he alleged.

The complainant further accused that the “Data/evidence revealed some shocking facts that LTO tax employees are practically involved in issuance of recovery notices without lawful jurisdiction to the banks of the complainant. Blunt violation of Sections 48, 11B, 2(2a), 2(5aa), 2(21), 2(34) read with rules 71(1), 71(2)(b) & 71(2)(d), 72, 73, 74 of Chapter XI (Recovery) of the Sales Tax Rules, 2006 and forms of recovery STR-17 and STR-18 on the part of respondents, in contempt of 2016 PTD 1799, 2021 PTD 162, 2022 PTD 760 and 2022 126 TAX 584. The misuse of authority has been witnessed to issue unlawful notices with “arrest threats” to the banks; it has been further alleged by the complainant. Appropriate disciplinary and criminal proceedings may be initiated against the public office holders responsible for illegal recovery from the IESCO.

Whereas the hearing of the subject complaint has been fixed for August 4, 2023 in the FTO secretariat at the above given address. The essence of the compliant is the same as contained in C.No. 2699/ISB/ST/2023 earlier disposed of by the FTO vide order dated 06.07.2023. Now therefore, it is required to appear for hearing on the date and time, the FTO order added.

Copyright Business Recorder, 2023

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