FTO Orders Probe into FBR Officers for Misconduct in Taxpayer’s Case

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PTBP Web Desk

In a significant move to uphold taxpayer rights and ensure compliance with legal procedures, the Federal Tax Ombudsman (FTO), Dr. Asif Jah, has initiated an investigation against officers of the Federal Board of Revenue (FBR) for submitting false or misleading statements while attempting to implement an FTO order. This order pertained to the coercive measure of attaching bank accounts during the pendency of an appeal, which contravenes established legal norms.

The case escalated to the President of Pakistan, who not only confirmed the FTO’s initial order but also added that the officers involved should be given an opportunity for a hearing before any punitive action is taken. This decision underscores the seriousness with which maladministration in tax enforcement is being addressed at the highest levels of government.

The controversy began when Dr. Iqbal Aujla, with the legal representation of Advocate Waheed Shahbaz Butt, lodged a complaint against the FBR for what he described as maladministration in the handling of his case. The core issue was the FBR’s unauthorized actions of attaching Dr. Aujla’s bank accounts while his appeal was still under judicial review, a clear breach of procedural law and FBR’s own guidelines.

Advocate Waheed Shahbaz Butt, when contacted, highlighted the gravity of the situation, stating, “The conduct of FBR officers was not just maladministration but an administrative excess. For taxpayers in Pakistan, the FTO is the last recourse against such injustices.” He further emphasized that a society tolerating deliberate falsehoods in its judicial processes is on a path to ruin.

The principle that all statutes must be applied with fairness and justice is fundamental, especially for public servants like those at the FBR who are constitutionally bound to uphold these values. Waheed Butt pointed out, “Public functionaries are duty-bound to act lawfully and justly, adhering strictly to constitutional mandates.”

The Chief Commissioner Inland Revenue (CCIR) involved should reprimand the officers who enacted the coercive measures during the appeal’s pendency.

Member-IR (Operations) at FBR must scrutinize similar cases nationwide to ensure compliance with FBR’s circulars, taking remedial actions where necessary, and issuing warnings to prevent such violations.

It reinforces the need for accountability within governmental bodies tasked with tax collection. The FTO’s intervention serves as a reminder that officials are not above scrutiny.

Officers must adhere strictly to legal procedures, especially when actions like bank account attachments can severely impact individuals or businesses.

It reaffirms the rights of taxpayers to a fair process, protecting them from arbitrary enforcement actions during legal proceedings.

Systemic Review: The directive to review similar cases suggests a potential systemic issue within FBR’s operations, pointing towards the necessity for broader reforms in tax enforcement practices.

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