ISLAMABAD: Federal Tax Ombudsman (FTO) Dr Asif Mahmood Jah on Wednesday directed the Federal Board of Revenue (FBR) to de-register a textile factory in Karachi that was set on fire after assassination of Benazir Bhutto in 2007.
The FTO noted with serious concern that the delay in de-registration of sales tax and keeping it pending for more than ten years despite statutory limit of 90 days is ‘maladministration’.
After looting and arson of factory premises in 2007, the textile factory had to close his business and filed deregistration application in 2012. The Commissioner should issue order of de- registration or cancellation of the registration not later than ninety days from the date of such application, FTO observed.
According to a latest order of the FTO issued on Wednesday, the company had filed application for de-registration in 2008, but the FBR failed to de-register the factory.
The complaint is filed against the Commissioner-IR RTO-II, Karachi, in terms of Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance), for not de-registering the registration of the complainant despite closure of business since 2008.
Precisely, M/s Sunflower International Korangi Karachi was the manufacturer of textile goods and registered in sales tax in 2004. After assassination of Benazir Bhutto on December 28, 2007, a mob attacked and set on fire the factory premises. An FIR was lodged in 2007.
The complainant, thereafter, approached the Prime Minister and Chief Justice of Pakistan for compensation but without any success. The Complainant decided to close his business and filed de-registration application in prescribed form STR-3 on 21.05.2012 followed by reminders from 2014-2022 but did not get any response, hence this complaint.
The complainant filed de-registration application in prescribed form STR-3 in 2012 but till date even after ten years, the Department did not bother to give any response attracting ‘maladministration’.
FTO findings revealed that the delay in de-registration of sales tax and keeping it pending for more than ten years despite statutory limit of 90 days tantamount to ‘maladministration’ under section 2(3)(i)(b) & (ii) of FTO Ordinance.
FTO has recommended the FBR to direct the Secretary Jurisdiction FBR to transfer the jurisdiction of the Complainant from RTO-II Karachi to CTO Karachi in terms of FBR jurisdiction order dated 20.12.2020 and also in view of NOC issued by RTO-II Karachi and by CTO Karachi.
The Chief Commissioner-IR, CTO, Karachi to deregister the complainant from sales tax in terms of Rule 11 of Sales Tax Rules 2006.
FTO has also directed the FBR to fix responsibility for inaction on the part of Department for ten years and report compliance within 45 days.
Copyright Business Recorder, 2023