ISLAMABAD: Appellate Tribunal Inland Revenue Islamabad (ATIR) has declared that actions by the Corporate Tax Office (CTO) Islamabad are not only illegal but also undermine the integrity of Pakistan’s taxation system in the eyes of foreign investors. The Finance Minister and Chairman Federal Board of Revenue (FBR) must address and resolve taxation issues immediately to restore fairness and legality in tax administration.
It is reliably learnt that a landmark order has been issued by the ATIR on Wednesday wherein role of FBR CTO tax employees has been highlighted with the observation that the Commissioner Inland Revenue (CIR); Additional Commissioner Inland Revenue (IR) and Assistant Commissioner IR blatantly disregard the binding judgments of the Apex Court without any fear of accountability.
Interestingly, the respondents refuse to acknowledge the undeniable truth. It is evident that they lack understanding of fundamental legal principles, ATIR judgement added.
Sec 132(3) of IT Ord: Willful delay in tax-related cases to cost CTO dearly
Referring to the order of ATIR, tax lawyer Waheed Shahzad Butt informed that the said actions by the FBR’s CTO will undermine the integrity of Pakistan’s taxation system, particularly in the eyes of foreign investors needs to be seriously taken by Prime Minister.
The patently illegal actions by tax officials are pushing the system to the brink of collapse, fostering an environment of distrust and financial strain for compliant taxpayers. Swift action by all relevant authorities is necessary to halt these unlawful practices and ensure taxpayer rights are upheld to preserve Pakistan’s taxation system. Accountability strengthens institutions rather than weakens them, ATIR order stated.
The ATIR order states “No legal and moral justification exists to reopen the issue which has attained finality and is a past and closed transaction for all purposes. Now passing the impugned order by the assessing officer being the lower authority cannot override the findings of the appellate/higher authority.
In the present case, the plea for refunds likely represents just the tip of the iceberg, indicating the absence of the rule of law, with the weaker segments of society being treated differently as ‘ordinary citizens’ and their constitutional rights no longer being a priority.
The facts and circumstances indicate a virtual collapse of the tax governance system for those most in need of state and institutional protection. This case exemplifies how regulators and public functionaries bend laws, mislead courts, and abuse orders passed during quasi-judicial proceedings.
Chairman FBR is advised to issue instructions to all officers adjudicating refunds emphasizing the consequences of non-adhering to the binding judgments of the superior courts, the ATIR order added.
Copyright Business Recorder, 2024
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