Ex-parte orders passed by IR officers: FBR chief moved against arbitrary tax demands

ISLAMABAD: Tax advisers have approached the Federal Board of Revenue (FBR) chairman against the arbitrary tax demands and ex-parte orders passed by the Inland Revenue officers against the business community till June 30, 2024.

In this regard, Javed Iqbal Qazi, advocate Supreme Court of Pakistan has written a letter to the FBR chairman here on Thursday.

According to the tax adviser, Inland Revenue Officers have raised arbitrary tax demands and issued ex-party orders to meet assigned targets by June 30, 2024. These cases are related to recovery, demands, audit and cases remanded back from Commissioner Appeals and Appellate Tribunals etc.

“We have been informed by our various members throughout the country that ex-parte orders have been passed by various Inland Revenue officers in the month of June wherein the notices were duly complied submitting the response manually after obtaining acknowledgement and also e-filed through e Portal,” he said.

On examination of the orders, it has been found that the assessing officers did not consider the official replies filed either through IRIS or manually and passed ex-party orders on the ground that no response have been submitted; thus, creating huge tax demand.

The FBR chairman should call report from all the Chief Commissioners of Inland Revenue of Pakistan regarding ex-party orders passed by the Inland Revenue Officers u/s 122(5) or (5A) of the Income Ordinance and take appropriate action where the reply has been submitted but orders passed ex-party in order to create arbitrary demand. This will surely improve the working of FBR and create confidence between the taxpayers and the FBR.

Inland Revenue officers are not performing their duties on merit but are raising arbitrary demands as per their whims, conjecture and surmises and the taxpayers are being punished and merit is being denied to them, Qazi stated.

The FBR chairman should take appropriate measures for the improvement of the FBR working and better collection of tax so as to develop confidence with the taxpayer.

Copyright Business Recorder, 2024