AIRLINK 65.20 Decreased By ▼ -0.70 (-1.06%)
BOP 5.57 Decreased By ▼ -0.12 (-2.11%)
CNERGY 4.56 Decreased By ▼ -0.09 (-1.94%)
DFML 24.52 Increased By ▲ 1.67 (7.31%)
DGKC 69.96 Decreased By ▼ -0.74 (-1.05%)
FCCL 20.30 Decreased By ▼ -0.05 (-0.25%)
FFBL 29.11 No Change ▼ 0.00 (0%)
FFL 9.83 Decreased By ▼ -0.10 (-1.01%)
GGL 10.01 Decreased By ▼ -0.07 (-0.69%)
HBL 114.25 Decreased By ▼ -1.00 (-0.87%)
HUBC 129.10 Decreased By ▼ -0.40 (-0.31%)
HUMNL 6.71 Increased By ▲ 0.01 (0.15%)
KEL 4.44 Increased By ▲ 0.06 (1.37%)
KOSM 4.89 Decreased By ▼ -0.13 (-2.59%)
MLCF 37.00 Increased By ▲ 0.04 (0.11%)
OGDC 132.30 Increased By ▲ 1.10 (0.84%)
PAEL 22.54 Increased By ▲ 0.06 (0.27%)
PIAA 25.89 Decreased By ▼ -0.41 (-1.56%)
PIBTL 6.60 Increased By ▲ 0.07 (1.07%)
PPL 112.85 Increased By ▲ 0.73 (0.65%)
PRL 29.41 Increased By ▲ 1.02 (3.59%)
PTC 15.24 Decreased By ▼ -0.87 (-5.4%)
SEARL 57.03 Decreased By ▼ -1.26 (-2.16%)
SNGP 66.45 Increased By ▲ 0.76 (1.16%)
SSGC 10.98 Decreased By ▼ -0.04 (-0.36%)
TELE 8.80 Decreased By ▼ -0.14 (-1.57%)
TPLP 11.70 Increased By ▲ 0.17 (1.47%)
TRG 68.62 Decreased By ▼ -0.62 (-0.9%)
UNITY 23.40 Decreased By ▼ -0.55 (-2.3%)
WTL 1.38 Increased By ▲ 0.03 (2.22%)
BR100 7,295 Decreased By -9.1 (-0.12%)
BR30 23,854 Decreased By -96 (-0.4%)
KSE100 70,290 Decreased By -43.2 (-0.06%)
KSE30 23,171 Increased By 50.4 (0.22%)

KARACHI: The Federal Board of Revenue (FBR) has imposed restrictions on tax recovery through bank account attachments, following a notice by the Islamabad High Court (IHC) regarding violations of its earlier order.

As per directives issued by the FBR, field formations cannot initiate recovery under Section 140 of the Income Tax Ordinance 2001 without prior approval from a committee headed by the Chief Commissioner Inland Revenue.

The committee, comprising two senior commissioners, will review each case before granting approval for bank account attachments for tax recovery.

FBR delays issuance of three key notifications

These directives supersede previous instructions issued in October 2021 and October 2022, which had eased restrictions on tax recovery measures.

The latest directives come after the IHC took notice of the FBR constantly violating its order passed in 2016 in the Pakistan LNG case, restraining tax recovery through coercive means.

As per the directives, field officers cannot take any recovery action once a restraining order is received from the Supreme Court, High Courts or appellate forums, like the Appellate Tribunal Inland Revenue.

Notices under Section 138(1) would be issued in all cases before initiating action under Section 140, allowing seven days for voluntary tax payment.

The FBR has directed Chief Commissioners to exercise judgment while filing appeals and references before higher courts, only in cases involving a question of law.

The move is aimed at preventing harassment of taxpayers through arbitrary tax recovery measures, though its impact remains to be seen.

Copyright Business Recorder, 2024

Comments

Comments are closed.

Tariq Qurashi Feb 20, 2024 04:59pm
This is a good move.
thumb_up Recommended (0)