PTBP Web Desk
The Federal Board of Revenue (FBR), tax advisers have lodged serious complaints against officials from the Regional Tax Office (RTO) in Sahiwal. The accusations center around the alleged harassment of an oil mill operator in Vehari, bringing to light potential misconduct within the ranks of tax enforcement.
Complaints Reach FBR ChairmanThe matter was escalated to the Chairman of the FBR, especially in the wake of Prime Minister Shehbaz Sharif’s directive that any tax official found fabricating cases would face stringent punishment. This directive underscores a broader initiative under the FBR’s transformation plan to overhaul tax administration and address corruption at its roots.
Details of the AllegationsThe complaints allege that officials from various ranks, including the Additional Commissioner of Sahiwal, Deputy Commissioner of Vehari, along with Assistant Commissioners and Inspectors, conducted an unauthorized raid on the oil mill. These officials reportedly entered the premises without proper legal authority, claiming to be from FBR’s Intelligence unit. They accused the mill of not filing sales tax returns and not paying due taxes, which led to them forcefully extracting cheques and cash worth millions, alongside seizing vital business records without due process.
Legal Backdrop and Judicial PrecedentsThis incident comes in the backdrop of a recent Supreme Court of Pakistan ruling, which dismissed over 300 civil appeals related to tax assessments. The court clarified that criminal proceedings like filing an FIR should not commence until after tax assessments are completed under section 11 of the Sales Tax Act. This ruling, known as the Taj International judgement, directly impacts how tax enforcement should legally proceed, emphasizing the need for lawful authority before any coercive action.
Tax Lawyers’ ResponseA firm representing tax law has sent a detailed letter to the FBR Chairman, outlining these accusations. The letter describes an event where the tax officials did not present any legal authorization for their actions, yet proceeded to intimidate and illegally seize assets from the business. The next day, the affected taxpayer, along with business associates, approached the Commissioner Inland Revenue (CIR) in Sahiwal Zone to report the misconduct and seek redress, including a recovery memo and legal notices that were never provided.
Alleged Cover-Up and Further ThreatsFurther complicating the situation, there are claims that rather than punishing the implicated officers, senior officials like the Chief Commissioner and CIR of Sahiwal have allegedly protected them. In an attempt to cover up the unauthorized actions, notices were issued under section 176 of the Sales Tax Act, which critics argue was an abuse of power. The tax lawyers argue that no provision under the Income Tax Ordinance, 2001, permits such raids without lawful authority, and they have accused the officers of further threatening the taxpayer with business closure and exorbitant tax impositions.
Call for AccountabilityThe tax advisers are now urging the FBR Chairman to take immediate and strict action against all involved officers to safeguard taxpayer rights and restore integrity to the tax enforcement process. This case not only tests the FBR’s commitment to its transformation plan but also its ability to self-regulate and ensure justice within its ranks.
Impact on Tax Compliance and Public TrustThis incident sheds light on the broader issue of how tax enforcement is perceived and executed in Pakistan. It raises questions about the effectiveness of current systems designed to prevent such abuses when sophisticated tools like electronic sales tax verification systems are in place. The ongoing allegations might further erode public trust in the tax system unless addressed transparently and decisively.
