The Federal Tax Ombudsman (FTO) has launched an investigation against the Federal Board of Revenue (FBR) based on a complaint regarding the issuance of tax recovery notices under Section 138 of the Income Tax Ordinance, 2001. The complainant, a taxpayer from Gujranwala represented by tax lawyer Waheed Shahzad Butt, lodged the complaint before the FTO.

Upon inquiry, the Adviser to the FTO ordered an investigation, requiring the FBR to respond to the allegations in the complaint by November 15, 2023.

Waheed Shahzad Butt, the representing advocate, highlighted the FBR’s earlier directive to avoid coercive measures until a case has completed the appeals process at the Commissioner (Appeals) level, aiming to prevent unnecessary litigation.

Citing specific directions in ITA 1790/IB/2022 and circulars issued by the FBR on October 5, 2022, Waheed raised concerns about the implementation of these instructions across field formations and the necessity for taxpayers to seek stay orders during pending appeals against assessment orders.

To safeguard taxpayer finances and prevent prolonged litigation, a request was made for the issuance of clear Standard Operating Procedures (SOP) for FBR field formations to comply with the instructions without deviation.