ISLAMABAD: The Federal Tax Ombudsman (FTO) has ordered to conduct an investigation against senior officials of the Federal Board of Revenue (FBR) for alleged delay in taking measures to recover unchallenged huge income tax demands from a China-based company for the tax years 2007, 2008, 2009, 2011, and 2012.

It is reliably learnt that a public interest complaint has been moved by a Lahore-based tax lawyer, Waheed Shahzad Butt, against the FBR officers for their long silence to recover unchallenged tax demand running into Rs632 million. The FTO had issued notice to the FBR officers to submit a reply to the allegations contained in the complaint by July 31, 2023, as required under Section 10(4) of the FTO Ordinance, 2000.

Tax lawyer Butt told this correspondent that apparently, the FBR has failed to initiate any action or take measures to recover unchallenged tax demands from a China-based company on the basis of orders passed u/s 122(5A) of the Income Tax Ordinance 2001 read with (2022 PTD 1839) for the tax years, 2007, 2008, 2009, 2011, and 2012. These unchallenged tax demands have been duly verified, and the company’s liability to pay the outstanding taxes has been established beyond doubt.

Copyright Business Recorder, 2023