Your esteemed paper was the first, to be followed by sundries. Business Recorder in its 31st March, 2014 issue pointed out that the Presidential Order IV of 2014 amending Sales Tax Act, 1990 was unconstitutional. Yesterday's Business Recorder reports that Transparency International Pakistan has drawn attention of Chairman, FBR to this unlawful amendment.
Transparency International "has invited his attention to reports regarding an unconstitutional provision of over-ruling Supreme Court of Pakistan's orders/judgements, in the new law and requested him to examine whether such an ordinance has been issued, and it was properly vetted by the Ministry of Law, as prima facie this is a defective law."
"In case the allegations are found correct, the Chairman, FBR has been requested to immediately rectify the orders by deleting illegal provisions," Recorder story with reference to Transparency International goes on. Probably, 'rectification', would not be enough. It is a thorough enquiry enquired. How comes unlawful orders are issued in the face of the law to give vent to stories regarding intentions of FBR taking rounds. FBR should not be allowed to enjoy the curtain of Ministry of Law.
An "abstract" in-house enquiry may be difficult. Let FBR be guided by orders of the Appellate Tribunal, superior courts' judgements and FTO questioning legality of FBR orders. Also, vires of scores of cases instituted against assessees, not meeting the legally 'fit and proper criteria', should be gone into. These are littered on all the counters.
Let a start be made by collecting information on the subject from known honest consultants and jurists. It is they who should tabulate the information before FBR. A retired superior court judge with a track record of handling tax litigations could also guide this compilation. A good number of heads should roll - not quietly. Criminal cases need to be initiated with properties details of the delinquents in the forefront. Mr Finance Minister! As (formerly) practising chartered accountant, you know what is what. Whether you opt to be active is a different thing.
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