FBR’s binding instructions: Member Legal approached regarding alleged blatant violations

ISLAMABAD: The Federal Board of Revenue (FBR) Member Legal has been approached regarding alleged blatant violations of FBR’s binding instructions meant to prevent futile litigation in cases involving the recovery of withholding tax (WHT) defaults in terms of Section 161 of the Income Tax Ordinance, 2001.

Concerns have been raised over certain field formations initiating recovery proceedings in apparent disregard of the landmark order passed by the Division Bench-I of the ATIR, as well as the explicit and binding directives earlier issued by the FBR itself. These actions are being viewed by stakeholders as attempts to undermine the authority of both the appellate forum and the FBR’s own legal framework.

Tax lawyer Waheed Shahzad Butt, speaking to this correspondent, “emphasized the gravity of the situation. It is imperative that necessary steps be taken to ensure strict compliance with the FBR’s binding instructions and the judicial pronouncements of ATIR. Any deviation from these standards amounts to administrative overreach and poses a serious risk to justice,” he stated.

According to sources, a formal request has been made to the Member Legal to issue urgent and unequivocal instructions to all concerned field formations, directing them to halt actions that are inconsistent with established legal precedent and the FBR’s internal guidance. Observers noted that the matter now warrants immediate and serious attention to prevent further miscarriage of justice and to preserve the integrity of administrative and judicial processes within the tax system

It is deeply concerning that the binding instructions issued by the FBR have been openly violated, without any justification or explanation. Such a defiant act reflects either willful disobedience or gross incompetence, both of which are unacceptable and damaging to the credibility of the tax administration. The 161 notices generated under the command of flagship entity of the FBR exhibit a glaring lack of professional diligence and legal awareness. Such conduct not only undermines the integrity of the department but also exposes taxpayers to unlawful proceedings, thereby eroding public trust, Waheed added.

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