Creating illegal IT demands: FBR field formation accused of using fake courier receipts

One of the Federal Board of Revenue''s (FBR) field formations is accused of using fabricated / fake courier receipts to create illegal income tax demands under the garb of Broadening of Tax Base (BTB) and making recoveries through attachment of bank accounts of salaried persons.
It is learnt that Federal Tax Ombudsman (FTO) is investigating a serious complaint of an employee of a foreign embassy, whose bank account was attached without serving any statutory notice and illegal recovery was made by IRS officers in Lahore, reflecting a clear case of harassment and severe mal-administration of justice.
In order to thoroughly investigate the matter, four IRS officials of RTO-II, Lahore including two Deputy Commissioners Inland Revenue (DCIR), Assistant Commissioner Inland (ACIR) and SA to Commissioner-IR were summoned by the Lahore FTO office and official record was examined during their presence. The complainant taxpayer has informed the FTO during hearing that official record presented by the department has been found to be full of distorted and fabricated facts, and adding that an attempt has also been made by the department to mislead the office of FTO, sources said.
When contacted tax lawyer Waheed Shahzad Butt, who represented the case of salaried person before the FTO told Business Recorder that it is unfortunate that the commissioner concerned has commented casually by using the words "Tax Evader" for a salaried individual having total wealth of Rs.2.4 Million after working as salaried individual for a decade. Written comments submitted by the commissioner were drafted in a manner to create an impression that a grave crime was committed by a salaried individual working in an International Embassy. SA to PM on Revenue is requested to conduct an inquiry against the erring IRS officials and take strict disciplinary action against them as per law, the lawyer added.
The complainant has highly appreciated and highlighted ongoing efforts made by Haroon Akhtar Khan, S.A to PM on Revenue to broadening the tax base. It is alleged that patently illegal actions of the IRS officers in the field formations are major hurdles in smooth implementation of tax compliance on voluntary basis by the new taxpayers.
The complainant states that broadening of tax base and VTC exercise is not the first of the sort in FBR''s long history, therefore, the previous such exercises as well as present casual non-professional attitude on the part of some rogue IRS officials need to be analysed, so as to ascertain that why and how IRS authorities could not convert this long cherished dream into a reality. Present complaint is a tip of the iceberg to highlight what is going on inside IRS and what is the price of paying tax voluntarily. In the patently illegal assessment order, no reference of addition in any property/business/asset is shown/confronted by the most vigilant and leaned DCIR. Prior to initiation of such harsh action no intimation/notice was ever issued to the Complainant by any of the IRS functionary, the complainant stated.
The complainant further stated "he electronically submitted income tax return, wealth statement and reconciliation statement and requested for withdrawal of illegal notice/order duly submitted at Taxpayers Facilitation Division, RTO. On silence from FBR functionaries another written request was moved but all in vain. Finally, a representation/complaint was moved to the CIR but as usual no response from either end. Quite surprisingly not a single notice u/s 122C/114/111 of the Ordinance has been issued/served by the FBR functionaries before passing patently illegal order and before snatching/robbing funds from the SCB.
The FTO is required by the terms of the statute that governs the working of the office of the FTO to unmask maladministration and recommend action to prevent its recurrence and this is exactly what the FTO has done. It would be a gross dereliction by the FTO if he was to turn a blind eye to the FBR''s illegal, mala-fide or outright incompetent machinations to tamper with the tax liability of a person without fulfilling the statutory obligations under the law, the complainant added.
As the FBR''s field formations are accused of using fabricated / fake courier receipts to create illegal income tax demands under the garb of BTB and making recoveries through attachment of bank accounts of salaried persons, therefore, Haroon Akhtar Khan, SA to Prime Minister on Revenue is requested to conduct an inquiry against the rogue elements representing the FBR/IRS and take strict disciplinary action against them as per law, the lawyer added.