ISLAMABAD: The Federal Tax Ombudsman (FTO) has ordered an investigation against the Federal Board of Revenue (FBR) officials for not responding to specific tax-related queries regarding instructions issued by the FBR for attachment of bank account of DISCOs, NTDC, and the CPPAG in recovery measures.
Some FBR's field formations are violating instructions issued by FBR in the attachment of bank account of DISCOs, NTDC, and CPPAG in recovery measures and circular bearing CNo 6(21)S(IR-Operations)/2017/35481-R dated 20.03.2017, have been ignored and violated by the field formations.
It is reliably learnt that a specific complaint has been lodged before the FTO after silence from May 5, 2023, to September 1, 2023, on the part of respondents/FBR for not clarifying a simple matter pertaining to avoidance of futile litigation at the cost of taxpayer money in courts.
Specific instructions issued by the FBR to all field formations vide circular bearing CNo6(21)S(IR-Operations)/2017/35481-R dated 20.03.2017, have been violated by the field formations. Previously through a high-level meeting arranged between the authorities of the FBR and the Ministry of Water and Power, it was decided that recovery from the taxpayers could be effected through dialogue and in an amicable manner.
Accordingly, the decision was put into writing in the form of circular bearing CNo 35481-R and instructions to Large Taxpayers Offices at Islamabad, Lahore, and Karachi were issued restraining them from taking recovery measures or to attach bank accounts without prior approval from Member IR(Operations).
The complainant states “a quite simple and unambiguous matter was communicated to the respondents/FBR vide email dated 05.05.2023 followed by two written reminders dated 09.08.2023 and 28.08.2023, but all in vain, nobody at FBR is ready to accept their professional obligation to perform duties in accordance with Section 206 of the ITO, 2001, the FBR Act, 2007 read with Article 4 and 5 of the Constitution.
Kindly clarify whether the afore-cited instructions/directions issued by FBR are binding on LTO Islamabad and its functionaries in terms of Section 206 or LTO Islamabad functionaries are excluded from the operations of cited instructions/directions issued by parent agency FBR.”
The FTO will probe the allegations of mal-administration as to why the FBR is not clarifying the important matter regarding recovery measures through the attachment of bank accounts of DISCOs, NTDC, and the CPPAG.
The complainant has referred to the duties and functions of the FBR officials under the FBR Act, 2007, read with section 206 of the Income Tax Ordinance, 2001.
Copyright Business Recorder, 2023