FTO's findings may be examined in light of Ombudsman Reform Act: FBR tells field formations

Before filing any review or representation before President against the Federal Tax Ombudsman (FTO) order, Federal Board of Revenue (FBR) has instructed its field formations that FTO's findings may be examined in the light of Federal Ombudsman Institutional Reform Act, 2013 and earlier orders passed by the President.
Sources told Business Recorder here on Tuesday that the FBR has issued instructions to Chief Collectors of Customs of South, Central, North, Enforcement of Karachi, Lahore and Islamabad on the issue of implementation of findings/recommendations of the FTO and adoption of procedure to file review before the FTO or representation before the President against the order passed by FTO.
When contacted, tax expert Waheed Shahzad Butt told this correspondent that earlier FBR in consultation with FTO through instructions had barred its field formations from filing fresh representations before the President against the FTO's orders in cases where previously filed representations have not been accepted by the President, but this is not practically happening and observed in the field.
Tax lawyer further added that said instructions needs to be followed by the field formations before filing of representations before the President against the orders of the FTO. Usually, head of formation raised some out of context jurisdictional questions, either during the course of investigation before the FTO and thereafter in representation before the President under section 32 of the FTO Ordinance, which is not only badly effects the process of implementation but also waste the precious resources of exchequer.
To avoid futile litigation and wastage of public resources in shape of taxpayer's money, it is the need of the hour to avoid unnecessary futile litigation on the settled issues at the forum of President in case of findings/recommendations issued by the FTO: lawyer added.
Referring to an earlier letter to the Chief-CIR and Chief Export, the FBR said that the contents of the findings may be examined in the light of Federal Ombudsman Institutional Reform Act, 2013/relevant law and compliance report, in duplicate, on the findings/recommendations may be sent to the Member (Legal) within the stipulated time. If the LTU/RTO/MCC/Directorate General intends to file a review or representation, it should be sent well within time, along with a certificate signed by the head of the formation clarifying whether or not any representation on the identical issue has been rejected by the President of Pakistan: the FBR instructions added.
As per FTO findings/recommendations, the complaint was filed in terms of Section 10(1) of the FTO Ordinance, 2000 alleging delay in settlement of refund claims on export to Afghanistan. Documents of pending refund claims were sent for confirmation of export. After confirmation of genuineness of documents and verification of exports, the refund due shall be sanctioned, the departmental representative assured.
In the past, several cases of fraudulent refunds against exports to Afghanistan were detected. Therefore, Regional Tax Office (RTO0 is required to exercise extreme caution while processing the refund claims, and should examine the claims very carefully, especially with reference to genuineness of exports and the input claimed, genuine existence of suppliers, proper compliance of Section 73 (without rotation of funds back to the buyers), withholding of Sales Tax etc. It may also be verified whether they have deposited proper amount of Income Tax payable against the claimed exports."
According to the findings of the FTO, it appears that delay in verification process is causing inordinate delay in refund which is tantamount to maladministration in terms of Section 2(3)(ii) of the Ordinance. It is a paramount responsibility of the dept to put in place a well laid out system for timely verification of genuineness of exports in order to avoid delay in settlement of refund claims, the FTO order added.