Bank account attachment of Discos, others: FBR endorses referring matter to Member (IR) Operations

ISLAMABAD: The Federal Board of Revenue (FBR) has endorsed that the matter of attachment of bank accounts of power distribution companies (DISCOS), National Transmission & Dispatch Company (NTDC) and Central Power Purchasing Agency (CPPA) should be referred to the FBR for prior approval of Member Inland Revenue (IR) Operations.

In this regard, the Federal Tax Ombudsman (FTO) Dr Asif Jah’s directions have been implemented by Federal Board of Revenue (FBR) and issued a clarification on November 27, 2023 that before attachment of bank accounts of Discos, the NTDC and the CPPA, the matter should be referred to FBR for approval of Member-IR, Operations.

It is reliably learnt that a specific public interest complaint has been lodged by tax lawyer Waheed Shahzad Butt before the FTO after long silence from FBR/ LTO Islamabad for not clarifying a simple matter pertaining to avoidance of futile litigation at the cost of taxpayer money in courts; wherein FTO has summoned Member-IR (Operations) for not responding to specific tax-related queries.

Waheed Butt stated that some FBR’s field formations (LTOs) are openly violating the instructions issued by FBR in case of attachment of bank account of Discos, NTDC, and CPPAG in recovery measures and instructions issued in C. No. 6 (21) S (IR-Operations)/ 2017/ 35481-R dated 20.03.2017, have been ignored and violated by the LTOs without any fear of accountability.

FTO order stated that the “complaint was filed against silence/ no response to clarify the matter regarding FBR binding nature of instructions issued dated 20.03.2017. The department contended that the Islamabad Electric Supply Company is the registered taxpayer of LTO, Islamabad. The information as sought in the instant complaint has not been filed by the taxpayer, rather has been sought by Waheed Shehzad Butt who happens to be a respectable private citizen, and not the taxpayer of LTO Islamabad. Further, the complainant had no standing in his specific queries relating to the Discos. He failed to prove his locus standi. Secondly, IESCO had not authorised Waheed Shehzad Butt to correspond with the tax authorities on its behalf. Member Operations is directed to issue a clarificatory letter to the Complainant with reference to FBR’s letter dated 20.03.2017 to redress the grievance of the same in an adequate manner and report compliance within 20 days.

FBR letter dated November 27, 2023 stated that “I am directed to communicate that FBR’s letter dated March 20, 2017 addressed to CCIR, CTO Islamabad was issued by IR Operations Wing regarding the attachment of bank accounts of Discos, NTDC and CPPAG and same has not been withdrawn so of yet”, FBR added.

Copyright Business Recorder, 2023