Charges against taxmen: CTO threatens tax lawyer of harsh legal action

ISLAMABAD: The Federal Board of Revenue’s Corporate Tax Office (CTO), Islamabad, has threatened a tax lawyer of severe legal consequences for making serious allegations against the tax officials.

In this regard, the CTO Islamabad has reportedly adopted a strange strategy to defend its stance before the Federal Tax Ombudsman (FTO).

The said CTO has communicated comments to the FTO in this specific case.

“Accusing an officer of government of Pakistan just in a few fancy lines can result in legal action against the lawyer which he seems to have forgotten,” CTO’s communication to the FTO added.

According to sources, during the ongoing proceedings before the FTO, officials of CTO Islamabad chose to shift focus from the substantive issues under investigation to the personal conduct of the complainant’s lawyer. The CTO, in its written stance, stated that the lawyer’s allegations were “unwarranted” and reflected a “lack of understanding,” claiming such remarks undermined the integrity and tireless efforts of the tax institution. It further cautioned that “irresponsible blame-shifting” without proof could lead to serious consequences for the lawyer, Waheed Shahzad Butt, Advocate.

The FTO is currently investigating a complaint involving the CTO Islamabad for allegedly adjusting sales tax demand against income tax refunds, a move the complainant before FTO has termed as potentially contemptuous in light of the Supreme Court’s landmark judgment in the Pakistan LNG case. Legal experts also view such actions as contrary to Article 10A of the Constitution of Pakistan, which guarantees the right to a fair trial and due process.

Apparently, the comments of the CTO seem to be an attempt to intimidate a lawyer performing his professional duties, raising serious concerns about administrative accountability and institutional conduct within the FBR’s field offices.

The CTO states before FTO “The assertion that recovery has been made illegally under section 48 is factually incorrect. No coercive recovery has been undertaken. The action in question is a lawful refund adjustment. Accusing an officer of government of Pakistan just in a few fancy lines can result in legal action against the lawyer which he seems to have forgotten. If learned advocate considers the recovery to be illegal, the appropriate course of action would be to approach the appellate forum rather than lodging a complaint with the FTO.

Such unwarranted allegations not only show a lack of understanding but also undermine the integrity and tireless efforts of the institution. Irresponsible blame shifting will not overshadow the facts without any proof of blaming which can lead to sever consequences for the lawyer Waheed Shahzad Butt: CTO added.

Copyright Business Recorder, 2025