Violation of SC orders: FTO orders probe against CTO Islamabad officials

ISLAMABAD: The Federal Tax Ombudsman (FTO) Dr Asif Mahmood Jah has ordered an investigation against the Federal Board of Revenue (FBR), Corporate Tax Office Islamabad for open violation of binding orders passed by the Supreme Court of Pakistan in tax refund-related matters.

It is reliably learnt that the office of the FTO had issued 10 notices to secretary Revenue Division/ chairman FBR and chief commissioner Inland Revenue, CTO, Islamabad to submit comments on or before May 27, 2024, on the allegations contained in the complaints moved against CTO, Islamabad tax employees for their maltreatment with the taxpayers.

When contacted, tax lawyer Waheed Shahzad Butt told this correspondent that the FTO will probe the allegations of mal-administration as to why the FBR tax employees are practically involved in severe contempt of orders passed by superior judiciary governing refunds.

There is an urgent need to redress this crucial issue; i.e., working of tax employee of FBR to play with the precious resources of the national exchequer (taxpayer’s money) under the umbrella of powers available with IRS functionaries and ultimate wastage of taxpayer’s money in futile litigation either by passing patently illegal orders or retaining taxpayer’s money in the shape of refunds.

Waheed further added that to show fake/ fabricated performance, a new mode has been adopted by the FBR field formations to block refunds, which is a blatant violation of Supreme Court’s orders. The FBR is currently rejecting refunds on two main grounds: - Time Limitation Issue: Refund claims are being dismissed on the basis of purported time limitations.

Reclassification of Tax Nature: In refund proceedings, the FBR is altering the nature of taxation to treat adjustable tax as final, thereby unjustly denying rightful refunds. These actions by the FBR are not only illegal but also undermine the integrity of Pakistan’s taxation system.

Such tax moves by FBR employees are pushing the system to the brink of collapse, creating an environment of distrust and financial strain for compliant taxpayers.

Whereas the above-mentioned complaint has been filed by the petition and the FTO has ordered to conduct an investigation of the said complaint.

Now, therefore, the department is required to submit para-wise comments/ reply duly signed by the concerned commission to the allegations contained in the complaint by May 27, 2024, as required under section 10(4). A copy of the reply may also be sent to the complainant simultaneously for his information and rejoinder if any, said FTO order.

Copyright Business Recorder, 2024