ISLAMABAD: The Federal Tax Ombudsman (FTO) has summoned Member Operations-IR, Federal Board of Revenue (FBR) and Commissioner-IR Regional Tax Office, Gujranwala, in a contempt petition on harassment to taxpayer, despite obtaining favorable order from the FTO on the issue of transfer of jurisdiction.
It is reliably learnt that FTO Regional Office Lahore has issued notices to the FBR Member, Commissioner to submit comments and appear on November 24, 2023.
The contempt petition has been moved by tax lawyer Waheed Shahzad Butt and stated that FTO shall have the same powers mutatis mutandis, as Supreme Court has to punish any person for its contempt.
The power, being exercised by the FTO is parallel to powers of the Apex Court and against the said action; remedy of appeal also lies before the Apex Court under Section 16(2) of the FTO Ordinance.
When contacted, Waheed Butt told this correspondent that despite the FBR’s responsibility to ensure fair and equitable taxation for all citizens, it has come to light that various field formations are involved in mal-administration.
The complainant stated that “a self speaking order has been passed by FTO and matter jurisdiction was referred to tax officials sitting at FBR HQ on the basis of sacred circular issued by parent agency (FBR).
However, three tax employees raided the office premises of the complainant and harassed the staff for some unknown reasons. This shows nothing but extreme disrespect and disgrace towards the office of FTO.
The letter dated November 16, 2023 issued by CIR and deputed a team of tax employees to raid the business premises, is an eye-opener for the forum of accountability (FTO) and all stakeholders.
The Supreme Court, in its judgment titled Said Zaman Khan v. Federation of Pakistan (2017 SCMR 1249) elaborated upon the concept of “mala fide”.
The SC categorized mala fides into two distinct categories; mala fide of law (malice in law) or mala fide of fact. Another strict view has been recorded in a recent judgment titled Justice Qazi Faez Isa v The President of Pakistan (PLD 2021 SC 1). Cognizance may very graciously be taken for gross criminal Contempt of FTO and concerned tax employee(s) may kindly be punished and stopped from doing any act prejudicial to the taxpayer.
Contempt proceedings be initiated in terms of Section 16 read with unambiguous order passed by Chief Justice of Islamabad High Court, complainant added.
Copyright Business Recorder, 2023