Islamabad, Pakistan: In a significant victory for taxpayers, the Federal Tax Ombudsman (FTO) has issued a landmark order against the Federal Board of Revenue (FBR) for its illegal tax recovery practices. The FTO has directed the FBR to reprimand officers who took coercive measures, such as attaching bank accounts, during the pendency of an appeal before the first appellate forum.
The case arose when a Gujranwala-based taxpayer, Usman Iqbal Aujla, filed a complaint against the FBR for illegally recovering funds from his bank accounts without following due process of law. After a thorough investigation and detailed hearings, the FTO found that the FBR officers had acted unlawfully and in violation of their own circulars.
The FTO’s order has been confirmed by President Asif Ali Zardari, who has also directed that the FBR officers involved in the case be given an opportunity to be heard before any action is taken against them. Business Recorder
Waheed Shahbaz Butt, the advocate representing the taxpayer, emphasized that the FBR officers’ conduct amounted to maladministration and administrative excess. He stressed that the FTO is the only forum available to taxpayers in Pakistan to seek redress for such grievances.
The FTO has recommended that the FBR direct the concerned Commissioner of Inland Revenue (CIR) to reprimand the officer who took the coercive measure. Additionally, the FTO has ordered the FBR to examine similar cases across the country and take remedial action wherever necessary.
This landmark decision is a significant victory for taxpayers who have been subjected to illegal tax recovery practices by the FBR. It sends a clear message to the tax authorities that they must adhere to the law and act fairly and justly in their dealings with taxpayers.
