‘Clever’ taxpayer fails to bypass established procedures

LAHORE: A ‘clever’ taxpayer has failed to bypass the established procedures for resolving tax disputes, as the relevant appellate forum has held that no other solution could be sought where an alternate remedy is available.

In a recent incident, despite a ruling that taxpayers could not bypass the established procedures for resolving tax disputes, the said taxpayer remained undeterred. He continued to file petitions and applications, hoping to find a way to avoid paying his taxes. But all his attempts remained unsuccessful and his applications were being dismissed one by one.

Ultimately, the taxpayer realized that he could no longer evade the tax system. With a sigh, he reluctantly paid his taxes, acknowledging that the law had finally caught up with him.

According to sources from among the tax authorities, this classic case serves as a reminder that while loopholes and lawsuits may provide temporary relief, they are no substitute for compliance with the law. As the courts continue to refine their procedures for resolving tax disputes, such taxpayers would do well to heed the warning: the tax system is not a game to be gamed, but a vital institution that underpins our society, they added.

It is worth noting that he taxpayers are found manoeuvring with the tax recovery system with the help of tax consultants, who linger on recovery proceedings by highlighting the loopholes.

In most of the cases, taxpayers had found a way to outsmart the tax system by challenge every tax notice that comes their way, seeking stay orders from the courts to avoid paying their dues.

Strategy of all such taxpayers is simple yet effective, as they approach the relevant appellate forums, citing grievances and requesting the concerned authorities to intervene. Meanwhile, they would also file a reference application and a stay application, which often gets stuck in the system.

Ultimately, they continue to delay payment of their taxes. The purpose of similar strategies on the part of taxpayers is very simple and that is to evade their tax obligations. Interestingly, the appellate authorities are not oblivious to such antics.

Copyright Business Recorder, 2024