Fresh assessment: action on FTO's recommendation mandatory on part of FBR functionaries

The Federal Board of Revenue (FBR) has directed its field formations that fresh assessment cannot be made without first implementing the Federal Tax Ombudsman (FTO) recommendations and field formations are legally obliged to implement the FTO orders in letter and in spirit.
It is learnt on Sunday that the FBR had issued instructions to the field formations to implement the FTO's recommendations within the given time frame unless it has filed a Review Application before the FTO within 30 days of receipt of order.
Explaining the provisions of Federal Ombudsman Institutional Reforms Act, 2013 (FOIRA), a Lahore based tax lawyer, Waheed Shahzad Butt, told Business Recorder that it was the primary statutory responsibility on the part of FBR functionaries to implement the unchallenged FTO's recommendations, where the department had neither filed any Review Application before FTO nor preferred any Representation before the President against the FTO's order and so as a consequence, his order had attained finality.
The Tax lawyer added that some field formations are not only involved in defiance of orders issued by the FTO but they are also disobeying the binding instructions issued by their parent agency "FBR". In this regard, Waheed referred to FBR's instructions issued vide C No1(337)S(TO-II)/2013 dated 23-1-2014 and C.No 1(11)CSTRO/FBR/2013 dated 25-9-2013 which stipulates that:
"The FTO has also observed that the department must implement the FTO's recommendations within the given time frame unless it has filed a Review Application before the Federal Tax Ombudsman within 30 days of receipt of order.
In case, representation before President is filed, the implementation remains suspended till disposal of the Review Application of for period of 60 days after filing of representation whichever is earlier. When the findings/recommendations attain finality, then fresh assessment cannot be made without first implementing the recommendations. It is, therefore, requested that to implement the recommendations of the FTO's in letter and in spirit and within the stipulated period".
Similarly in the case of other important hot issue of "Queue Breaking", the following instructions have been issued by the FBR to field formations "...claims warranting immediate processing on account of Court/FTO Orders shall be given priority in the queue...". Breaking the queue has been expressly desired by the FBR in Court/FTO's cases and these instructions are binding on all FBR functionaries under all fiscal statutes but some officials are grossly violating the binding instructions.
Referring to FOIRA, Waheed said that any aggrieved party may file a representation against FTO's within 30 days directly to the President. Under section 14(2) of the FOIRA the operation of recommendations shall remain suspended for a period of 60 days. After the lapse of statutory time period revenue division shall be legally obliged to implement the recommendations without any further delay.
Another aspect behind the enactment of the FOIRA is to ensure effective implementation of FTO's orders. In routine practice officials concerned had been blocking the orders passed in favour of taxpayers under one pretext or the other. However, section 24 of FOIRA, that has overriding effect overall other enactments, if applied in good faith, can strengthen the process of accountability and enhance effectiveness of forum of FTO in providing speedy and expeditious relief to taxpayers of Pakistan by redressing their grievances to promote good governance, Waheed added.