Delay in issuance of tax refund for 2013-14: CTO involved in justice maladministration: FTO

ISLAMABAD: The Federal Tax Ombudsman (FTO) Dr Asif Mahmood Jah in a landmark judgment has declared that Corporate Tax Office, Islamabad (CTO) is involved in maladministration of justice for delay in issuing tax refund for the tax years 2013 and 2014 and ordered the FBR to settle refund proceedings with compensation for the delay as per law.

It is reliably learnt that the orders have been issued by the FTO wherein it has been declared that the complainant/taxpayer is struggling hard to receive back his due refund for tax years 2013 & 2014 in a case where refundable amount has already been determined by CTO. The delay in issuing refund order is found unreasonable, unfair and arbitrary which constitutes maladministration in terms of section (2)(3)(i)(b) and (ii) of the FTO Ordinance, 2000 on the part of CTO.

When contacted tax lawyer Waheed Shahzad Butt who is representing the complainant told this correspondent that the prime minister/finance minister must probe the proven maladministration as to why the FBR’s tax employees are violating the taxation system of Pakistan. There is urgent need to redress this crucial issue i.e., working of FBR to play with the precious resources of Exchequer (taxpayer’s money) under the umbrella of powers available with IRS functionaries and ultimate wastage of taxpayer’s money in futile litigation either by passing patently illegal orders or retaining taxpayer’s money in the shape of refunds. A new mode has been adopted by the FBR field formations to block refunds, which is a blatant violation of Supreme Court orders.

The FTO order stated “In response to hearing call, Waheed Shahzad Butt, along with Khurram Shahzad, appeared and argued the case. Osama Idrees, from CTO Islamabad attended as the departmental representatives (DR) and presented department’s stance.

The department has filed a reference before Islamabad High Court against order of ATIR which is pending. The matter is subjudice, therefore, jurisdiction of FTO is ousted by virtue of section 9(2)(a).

The CTO stated, the matter which is pending before a High Court cannot be taken for investigation by the FTO as the judgment of the High Court in pending reference may affect the outcome of the proceedings of FTO as issuance of refund is directly linked with the amendment proceedings subjudice before High Court. As regards departmental objection to jurisdiction u/s 9(2)(a), it is stated that this office has taken cognizance of the issue of delay in issuing refund of the complainant and such inordinate delay constitutes maladministration. Therefore, the objection of the department on this score is misconceived and overruled.

Order of the tribunal is required to be implemented despite pending References to a High Court if no restraining order is available. It is further found that the President has also issued orders holding that the orders issued by the appellate authorities are required to be implemented in case stay is not in the field. The FBR to direct the concerned CIR to dispose of refund proceedings in respect of taxpayers in accordance with law on merits within 30 days and to pay compensation if due under law, the FTO order added.

Copyright Business Recorder, 2024