The Appellate Tribunal Inland Revenue (ATIR) and Commissioner Inland Revenue Appeals (CIR-A) could not entertain tax-related matters already taken up and decided by the Federal Tax Ombudsman (FTO) under the newly-introduced Federal Ombudsmen Institutional Reforms Act of 2013 (FOIRA).
Explaining provisions of the FOIRA-2013, a Lahore-based advocate Waheed Shahzad Butt told Business Recorder here on Wednesday that the Appellate Tribunal Inland Revenue and Commissioner Inland Revenue Appeals cannot exercise jurisdiction to entertain a matter pending with FTO under complaint or review under the FOIRA. The Act will bring comprehensive reforms in the institutions of Ombudsmen and officials responsible for non-compliance or defiance of orders may be sent to jail which may be extended up to six months, tax lawyer highlighted.
Section 18 of FOIRA shall reduce unnecessary litigation at dual/multi forums. Authorities in normal appeal hierarchy shall also be restrained from creating parallel litigation. Section 18 states no court or authority shall have jurisdiction to entertain a matter which falls within the jurisdiction of an Ombudsman nor any court or authority shall assume jurisdiction in respect of any matter pending with or decided by an ombudsman, while under Section 24 the provisions of FOIRA shall have effect notwithstanding anything contained in any other law for the time being in force. In case there is a conflict between the provisions of this Act and the relevant legislation, the provisions of this Act to the extent of inconsistency, shall prevail.
For instance in case of litigation under the provisions of Income Tax Ordinance, 2001 and Sales Tax Act, 1990, authorities like CIR-A and ATIR shall also be restrained from creating parallel litigation and a matter already taken up and decided by the FTO could not be entertained by the CIR-A or ATIR, similarly authorities like CIR-A or ATIR could not exercise jurisdiction to entertain a matter pending with FTO under Complaint or Review: Waheed added.
FOIRA suggested various judicial powers to Federal Ombudsmen of Pakistan including strict action for Non-filing of comments by the agency within time given by Ombudsman and disciplinary action, temporary injunction, power of Civil Court to grant stay/temporary injunction and implementation of orders/recommendations by exercising powers of Civil Judge to execute decree against a judgement debtor including arrest and attachment of salary etc, limitation to file Review and Representation and its disposal within specified time.
Waheed further said that initially office of the Federal Ombudsman was established in 1983 and at present five Ombudsmen are functioning at the federal level in the country which include Federal Tax Ombudsman, Wafaqi Mohtasib (Ombudsman), Federal Insurance Mohtasib, Banking Mohtasib Pakistan and Federal Ombudsman for protection against harassment of women at work places. The office of any Ombudsman is one of the core institutions of the country where the grievances of the non-influential masses are addressed speedily and free of charge.
It is the primary responsibility of the ombudsman's institutions to address the problems of the poor masses efficaciously. According to the newly introduced FOIRA, the Ombudsman is bound to dispose of the complaints within a period of sixty days of filing date and competent authority would inform ombudsman about the action taken on his decisions. Ombudsman may exercise powers to punish for contempt in case of non-compliance of orders by authority as provided in the contempt of court ordinance, tax lawyer explained.
By exercising powers of a Civil Court any Ombudsman may also grant temporary injunction/stay order against the mal-administration/mala-fide action of the officials, for a period of sixty days. Earlier these power were not available to the Ombudsman.
Referring to the FOIRA, Waheed said that any aggrieved party may file a representation against the decision/order/recommendation issued by Ombudsman within thirty days directly to the President without involving any ministry, division or department. In the Presidency, a retired Federal Tax Ombudsman, Federal Ombudsman or a person who had been or qualified to be judge of Supreme Court would process the representation within 90 days. Earlier these provisions were not available in the relevant legislation.
In case of removal of Ombudsman from his office, it shall be routed through Supreme Judicial Council on the grounds of being incapable of properly performing duties or found to have been guilty of misconduct. The tenure of the Ombudsman would be for a period of four years and he could not be entitled for re-appoint or get further extension, however, any retiring Ombudsman shall continue to hold office after expiry of his tenure till his successor enters upon the office.
A new concept of Grievances Commissioners (GC) has been introduced through FOIRA. GC shall be appointed in all big public institutions of the country under the Ombudsman. The GC will be bound to take decisions on the public complaints about the ministry, division and department concerned. If the GC cannot decide the matter in specified time then the case will be automatically transferred to the Ombudsman who is bound to take decision on the same complaint within 60 days. This will not only help in solving the problems of the non-influential masses but also bring transparency in the performance of the departments and also promote culture of accountability in Pakistan, he said.
Review against the findings shall lie within 30 days of the receipt of recommendations by any aggrieved party. Earlier there was no time limit to file the review, now under the new law there is not only a time limit has been prescribed to file the Review but the timeframe has also been provided to dispose of the review petitions. In case of non-compliance or defiance of orders, cases of contempt of court will be initiated against those Officials who do not implement the orders of the federal Ombudsman in the given time period and in case of non-compliance the officers concerned may be sent to jail which may be extended up to six months, Waheed said.