Absence of taxpayer: KTBA urges FBR to withdraw all orders passed ex parte

KARACHI: Karachi Tax Bar Association (KTBA) has requested the Federal Board of Revenue (FBR) to withdraw all orders passed ex-parte in the absence of taxpayer by taking recourse of section 122A of Income Tax Ordinance, 2001 and section 45A of Sales Tax Act, 1990.

In a letter sent to the member IR operations, the KTBA said that the field formations were not considering requests from taxpayers for adjournment of hearings/compliance and are adamant to process ex-parte/enforce personal hearings.

Moreover, it said that in some of the cases, ex-parte orders were already passed where taxpayers were observing self isolation and were quarantined for having contracted Covid-19 and were unable to attend hearing notices.

It said that such actions of passing ex-parte orders were totally against the spirit of facilitation and would be detrimental to the image of FBR. Additionally, passing of such orders will not achieve any objective but would not also stand test of appeals.

Therefore, Karachi Tax Bar Association (KTBA) requested the board to refrain field formations from passing orders where taxpayers requested for adjournments and are isolated due to Covid-19 pandemic.

Furthermore, the bar has also urged the FBR to direct field formations to recall all such orders passed ex-parte in the absence of taxpayer by taking recourse of section 122A of Income Tax Ordinance, 2001 and section 45A of Sales Tax Act, 1990 and added that the issuance of all notices should also be suspended till December 08, 2020 (last date of filing of returns).

Copyright Business Recorder, 2020