Islamabad: The Federal Tax Ombudsman (FTO) has summoned Member Inland Revenue (Operations) Federal Board of Revenue (FBR) and Chief Commissioner-IR of the LTO, Islamabad to appear on October 24, 2023 for not responding to specific tax-related queries regarding FBR’s instructions for attachment of bank accounts of power distribution companies to recover taxes.
It is reliably learnt that a specific complaint has been lodged by a tax lawyer, Waheed Shahzad Butt, before the FTO after silence from May 5, 2023, to September 1, 2023, on the part of FBR/ LTO for not clarifying a simple matter pertaining to avoidance of futile litigation at the cost of taxpayer money in courts.
When contacted, Waheed Butt told this correspondence that 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 C. No 6(21) S (IR-Operations)/ 2017/ 35481-R dated 20.03.2017, have been ignored and violated by the field formations without any fear of accountability from any court/ authority.
Taxpayers’ queries: FTO concerned at FBR Member’s lack of response
The complainant states, specific instructions issued by the FBR to all field formations vide circular dated March 20, 2017, have been openly violated by the field formations including flagships of FBR LTOs. 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 affected through dialogue and in an amicable manner.
Waheed added that nobody at FBR is ready to accept their professional obligation to perform duties in accordance with FBR Act, 2007, read with Article 4 and 5 of the Constitution. They are more interested in showing fake/ fabricated performance to IMF/ PM to rob funds under the umbrella of tax recovery.
Recent recovery move to rob funds from a state owned entity Utility Stores Corporation (USC) by the LTO Islamabad is another worst example of highhandedness and extreme mal-administration of justice.
LTO tax employees are practically involved in issuance of recovery notices without lawful jurisdiction to the banks in 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, Waheed added.
Copyright Business Recorder, 2023
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