Unlawful tax recovery from Iesco: FTO orders probe against officials of LTO Islamabad

ISLAMABAD: The Federal Tax Ombudsman (FTO) has ordered an investigation against the tax officials of the Large Taxpayer Office (LTO), Islamabad for unlawful tax recovery from Islamabad Electric Supply Company (Iesco) through attachment of its bank account.

It is reliably learnt that the office of the FTO had issued notice to Member IR-Operations FBR and Chief Commissioner IR, LTO Islamabad to submit comments by June 8, 2023 against the allegations contained in a complaint filed by the Iesco.

The FTO will probe the allegations of maladministration as to why the LTO functionaries are allegedly involved in unduly harassing the taxpayers under the garb of powers available with IRS functionaries to recover taxes without lawful authority.

When contacted tax lawyer Khurram Shahzad told this correspondence that complaint has been lodged against tax employees posted at Zone-II, LTO Islamabad and former chief commissioner LTO for alleged illegal recovery of huge funds from the bank accounts of Iesco without following due process of law and in extreme contempt of orders passed by Islamabad High Court, he alleged.

The complainant further accused that the “Documents/data/evidence revealed some shocking facts that respondents are practically involved in issuance of recovery notices without lawful jurisdiction to the banks of the complainant. Blunt violation of Sections 48, 11B, 2(2a), 2(5aa), 2(21), 2(34) read with rules 71(1), 71(2)(b) & 71(2)(d), 72, 73, 74 of Chapter XI (Recovery) of the Sales Tax Rules, 2006 and forms of recovery STR-17 and STR-18 on the part of respondents, in contempt of 2016 PTD 1799, 2021 PTD 162, 2022 PTD 760 and 2022 126 TAX 584.

The misuse of authority has been witnessed to issue unlawful notices with “arrest threats” to the banks; it has been further alleged by the complainant.

Appropriate disciplinary and criminal proceedings may be initiated against the public office holders responsible for illegal recovery from the Iesco, the complainant requested the FTO.

Copyright Business Recorder, 2023