Going after taxpayers without sound legal footing constitutes harassment: FTO

ISLAMABAD: The Inland Revenue tax officials are allegedly committing the worst kind of harassment by issuing illegal penalty notices to small taxpayers, who dare to go to the Federal Tax Ombudsman (FTO) against the Federal Board of Revenue (FBR).

The FTO is shocked that multiple notices have been received by taxpayers, who went to the FTO against the alleged maladministration of the tax machinery.

Taxpayers are now being regularly punished for committing the crime of filing complaints with the FTO office.

Based on the above report of malpractices, the FTO initiated own motion investigation taking strength from Section 9 (1) of the FTO Ordinance.

The FTO’s directions to the tax authorities say, “The instant OM pronouncement should be read carefully by the FBR top management for the chances of slippages are now minimal. Chasing taxpayers without sound legal footing, tantamount to harassment and this impression needs to be dispelled at once. If any taxpayer is pursued subsequent to filing of complaint before this forum, in any unlawful manner, it shall be earnest endeavour to identify such authorities and give appropriate findings accordingly”.

“Proper application of mind on part of officers is lacking and mechanical stance is therefore obvious. When any issue is highlighted, the carefree error is attributed to technical over sight or system glitch. Rejection of refund request has been attributed by the department to technical oversight, whereas, penalty notice issuance in haste has been regarded to list provided by the DBA. The request of taxpayer for allowing filing of ST return for earlier months has conveniently been ignored all the while. Professionalism becomes first casualty in such instances, whereas, the trust deficit gap between taxpayers and the department, already at the lowest ebb, widens even further,” FTO regretted.

The FBR has also received instructions from the FTO office that the while investigating complaints, it is being observed that the taxpayers/ complainants have to face wrath of the tax authorities, pursuant to filing of complaint before the FTO, in the form of multiple notices on frivolous grounds under various provisions of statute. Such treatment is meted out to discourage the complainants from filing complaints before the FTO office.

This adverse behaviour erodes the confidence and negatively impact the trust of citizens on the institution of FTO. During investigation of complaint No.0776/KHI/IT/2022, it was pointed out by the complainant that after filing the said complaint, the taxpayer/ complainant had been receiving notices of penalty, although his request for allowing filing of sales tax return for earlier period were pending decision by the department for more than four months.

On one hand, there is an inordinate delay in required legal action by the department in enabling filing of sales tax return resulting in non-filing, and on the other hand, notices for penalty are being issued for already filed returns.

Additionally, the concerned unit officer, during pendency of the complaint before this Forum, also passed the order of rejection of refund without affording opportunity of hearing to the Complainant. Such unreasonable attitude and victimization of complainants erodes the trust of citizens on the efficacy of the institution of FTO in redressing the grievances of taxpayers, the FTO order added.

Copyright Business Recorder, 2024