Chief Justice Iftikhar Muhammad Chaudhry on Tuesday observed that frequent amendments in income tax laws have paved the way for corruption, instead of simplifying the procedure. The CJ said that instead of serving any purpose, the numerous amendments in the Income Tax Ordinance had vanished the faith of people from the system which ultimately was causing damage to the country.
It is none other than the people from the Tax department who guide the taxpayers about modes of avoiding tax, the Chief Justice observed. He expressed these views while hearing tax appeals of some 500 taxpayers, and said that the court would direct the Attorney General to adopt necessary steps for simplifying the tax laws to regain the confidence of taxpayers and investors for motivation of investment.
A three-member bench of the apex court comprising Chief Justice Ifitkhar Muhammad Chaudhry, Justice Raja Fayyaz Ahmed and Justice Chaudhry Ijaz Ahmed adjourned the hearing till May 11.
The SC is hearing the appeals of income tax assessments and re-opening of past cases during the last five years under the Income Tax Ordinance. Musheer Ilyas Khan appeared as counsel for Federal Board of Revenue (FBR). The CJ observed that taxpayers have no confidence in the system, due to which they are not ready to pay their taxes. In such an atmosphere of mistrust, how the investment in the country could increase? he added.
Meanwhile, the Chief Justice directed Inspectors-General of Police of the provinces to submit, in the court on May 13, a detailed report regarding total number of vehicles impounded without registration papers and their present use. The bench issued these directions while hearing an application from a resident of Peshawar. The applicant had apprised the court that police had put under its personal use vehicles confiscated due to non-availability of registration.