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ISLAMABAD: The Federal Tax Ombudsman (FTO) has directed Chief Commissioner Inland Revenue, Lahore and other officials to submit a report on the alleged negligence of not taxing the assets/income of former Prime Minister Nawaz Sharif and his family members.

It is reliably learnt that the FTO office has directed the Revenue Division Secretary and Chief Commissioner-IR, Lahore to submit a written reply by November 1, 2021 to the allegations contained in a public interest complaint lodged by a Lahore-based lawyer, Waheed Shahzad Butt, against present and former Chairman FBR, Chief Commissioner IR, Commissioner IR, and others.

According to details, tax lawyer Waheed Butt had filed a plea against tax employees of Revenue Division under section 2(3)(i)(d) & 2(3)(ii) of the FTO Ordinance for not taxing assets/income of former Prime Minister & his family members.

'Inflated' tax notices to Shehbaz, late Kulsoom: FBR given last opportunity to furnish proof

FTO notices stated, "The tax codes of Pakistan, like other laws of the world, contain specific provisions aimed at countering "tax evasion".

The expression "tax evasion" under section 109(2) is defined exclusively (meaning by no other meaning can be assigned to it) as "any transaction where one of the main purposes of a person in entering into the transaction is the avoidance or reduction of any person's liability to tax under this Ordinance".

Copyright Business Recorder, 2021

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