For future probationary officers of IRS: FTO forwards case of ‘classic maladministration’ to develop case study

LAHORE: Federal Tax Ombudsman (FTO) Dr Asif Mahmood Jah has forwarded a case of maladministration to Directorate of Training and Research, Inland Revenue, for developing as case study to be taught as an integral part of the Sales Tax syllabus for all the future batches of probationary officers of Inland Revenue Service (IRS) in pursuit of their Specialized Training Programme (STP) after Common Training Programme (CTP).

According to the order passed by the FTO, the case is a classic example of neglect, inattention, delay, incompetence, inefficiency and ineptitude of the tax department, constituting maladministration on the part of IRS.

The FTO has pointed out that the case has been badly mishandled by the department due to rapid changes in the jurisdiction and transfer/postings of the officers from one place to another.

He said the case is related to refund of sales tax to a commercial exporter on zero-rated supplies. The tax authorities proceeded against him for using fake/flying invoices. The taxpayer tried to satisfy the authorities against the show-cause notice, which remained unresolved for about two decades with series/rounds of litigations even in presence of order in his favour having been duly passed by the Commissioner Appeal. But the department neither filed second appeal nor sanctioned him the refund amount.

Finally, the matter reached the FTO in the form of a complaint which held that the situation of the present matter has reached a stage where the department would have no choice but to give effect to the order of Commissioner Appeals as the same has attained finality and President of Pakistan has rejected the appeal against the order of the FTO.

The FTO has pointed out that the issuance of show-cause notice some 19 years ago and rejecting the refund claim on allegations of fake/flying invoices without having incriminating evidence/documents would be a blatant violation of the law and the orders already passed by the Commissioner Appeals. During 19 years, no serious and professional effort was made on record to show that the matter in hand was paid any prudent heed by the department, he added.

Copyright Business Recorder, 2023