Taxpayers’ disputes with FBR: FTO’s IDRC resolves 347 cases without litigation

18 Feb, 2024

ISLAMABAD: The Informal Dispute Resolution of Complaints (IDRC) of the Federal Tax Ombudsman (FTO) has resolved 347 disputes of taxpayers with the Federal Board of Revenue (FBR) without going into litigation during 2023.

In 2022, the FTO resolved 606 cases of taxpayers through the forum of the IDRC.

The FTO’s annual performance report for 2023 revealed that the FBR and its field formations are usually vigilant to resolve IDRC complaints as it does not involve formal paper working. Among others, the technical errors in the FBR return filing system reported through the FTO forum are dealt by FBR efficiently, which is not only helpful in resolving the instant complaints through this informal means but also in proactive monitoring of bugs and removal of technical errors swiftly.

The report said that the IDRC is a distinctive platform provided by the FTO Office in the modern era. This involves use of modern age technology, means of communications such as phone calls, cell phone calls, WhatsApp call/message or through email or any mode of communication which can quickly resolve the complaints of the taxpayers.

One of the characteristics of the IDRC is that it may not necessarily require registration of complaint and is usually resolved in quick time. The IDRC mechanism is provided under section 33 of the FTO Ordinance, 2000 read with Regulation 34 of Regulations, 2001 added vide SRO No. 181(I)/2023. dated 18th Jan 2023 to resolve a complaint without written memorandum, notice and without docketing any complaint or issuing an official notice. The cases of informal dispute resolution requiring urgency are to be resolved by tax functionary within 10 days.

The Ombudsman can adopt informal means of Dispute resolution in the matters of: i. Administrative hiccups that created hardships for the taxpayers. ii. Cases with extreme urgency, entailing irreparable losses to the taxpayers. iii. Misuse of powers and official position of subordinate officials requiring immediate intervention of higher authorities at FBR and its field formations. The FTO office resolved a number of cases through informal dispute resolution wherein, taxpayers were unable to file their income tax return or sales tax return due to some technical issues, the FTO report added.

Copyright Business Recorder, 2024

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