ISLAMABAD: The Federal Board of Revenue (FBR) has failed to implement a key recommendation by the Federal Tax Ombudsman (FTO) for taking action against the tax officials responsible for failure to comply with the stay order issued by Commissioner Appeals, Islamabad.

A Lahore-based taxpayer Masud Reza through Waheed Shahzad Butt Advocate has filed a constitutional petition in the Islamabad High Court (IHC) wherein IHC has ruled that the President of Pakistan has misapplied the law to set aside the order of the FTO, who has jurisdiction to recommend criminal/disciplinary proceedings against the FBR’ officials.

However, despite the lapse of reasonable time, the implementation on the key recommendations remained unimplemented and no action has been taken against any FBR official.

FTO’s jurisdiction: IHC sets aside President’s order

The finding of the FTO was that the failure or refusal of the tax officials to honour and implement the stay order was perverse, arbitrary, unjust and oppressive and such conduct fell within the definition of maladministration under Section 2(3) (i)(b) of the FTO Ordinance.

After reaching such conclusion, the FTO issued recommendations to the FBR to take suitable action against the officials responsible for failure to comply with the order of the Commissioner Appeals.

IHC order states, “It is the duty of FBR to ensure that taxpayers are treated justly and fairly during the adjudication process. It is not for FBR to deny knowledge or dodge service of any orders issued by the Commissioner (Appeals) and thereby deny any benefits of a stay order.

Consequently, the denial of knowledge is without merits and would constitute an independent ground for FBR, under the relevant provisions of the FBR Act, 2007, to initiate an inquiry and take disciplinary action against officials who claimed that they were unaware of the stay order, the IHC ordered added.

Copyright Business Recorder, 2023