ISLAMABAD: The Federal Tax Ombudsman (FTO) has directed the Chief Commissioner Inland Revenue Corporate Tax Office, Islamabad to keep fresh tax audit proceedings in abeyance until the refund process already ordered is fully implemented.
Furthermore, the FTO has also directed the Chief Commissioner IR to appear and explain the reason behind continued non-compliance and the delay in submitting the required compliance report.
Sources informed that FTO expressed serious concern over the blatant disregard of legal obligations and warned that appropriate action will be taken in case of continued defiance. It is reliably learnt that directive comes in light of delays and apparent non-compliance with previously issued FTO recommendations pertaining to the issuance of lawful refunds for the Tax Years 2008 to 2017. The FTO emphasized that initiating fresh audit proceedings for Tax Years 2020, 2021, 2022 and 2023 without resolving pending refund matters amounts to maladministration and adds undue hardship to taxpayers.
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The FTO order states “FBR have already issued instructions dated 04.02.2022 regarding bar on initiation of any fresh audit/recovery proceedings against taxpayer during pendency of complaint before the FTO. You are required not to conduct any audit during implementation proceedings unless some tax year is getting time barred.
Case was fixed for hearing on 30.05.2025 and 20.06.2025 for filing of final compliance report. Instead of filing compliance report department again sought time for filing of final compliance report, case is finally fixed for 10.07.2025. You are directed to explain the reason of non appearance and delay in furnishing compliance report.“
This order by the FTO underscores the need for transparency, timely implementation of tax laws, and safeguarding taxpayers’ rights against arbitrary administrative actions.
Copyright Business Recorder, 2025
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