Federal Tax Ombudsman (FTO) has initiated investigation against the mal-administration of tax functionaries of Regional Tax Office (RTO) Islamabad, for not de-attaching the bank accounts of a taxpayer despite vacation of demand by competent court.
It is reliably learnt that the FTO has taken up a complaint of an I.T professional, whose bank account was attached without serving any statutory notice and thereafter continuation of bank attachment orders despite having vacation of tax demand order issued by competent authority.
According to the details, the instance complaint reflects a clear case of harassment and mal-administration. The FTO has started investigation on the complaint filed before the FTO through Lahore based lawyer Waheed Shahzad Butt and notices have been issued to the Secretary Revenue Division, Chief Commissioner, RTO, Islamabad, Saad Khan, Tax Employee, Zone West, Islamabad, Commissioner Zone-III, Islamabad and Chief Commissioner.
Due to alleged harassment of the tax employees of the RTO Islamabad, the businessman not only left the country, but also stopped his entire business, complainant accused.
The complainant stated that the Secretary Revenue is the head of the agency (FBR) while SA to PM, being representative of the Prime Minister, designated/notified as Special Assistant to Prime Minister on Revenue, is the supervisory authority over tax employees working under the command and control of the Secretary.
Saad Khan is a subordinate tax employee of CIR and Chief Commissioner, RTO, Islamabad while CIR is responsible for work done by the Public Office holder (Saad Khan).
The complainant was earlier employed in Islamabad and after resigning started his own business, however, due to certain unavoidable circumstances remained failed to continue its own business successfully, therefore, again started employment.
In the month of July 2016 a cheque issued by the Complainant from his personal bank account was returned dishonoured by the Bank with the strange remarks that "Bank Account has been attached by the order of the IRS official of Zone III, RTO, Islamabad". After visiting the concerned RTO, a request was moved to tax employee with the categorical remarks that no order/demand note etc was ever issued/served and attachment of bank accounts is not only highly unjust but unconstitutional. On 05.08.2016 certified copy of order dated 28.06.2014 has been issued / served, wherein it has been revealed that a huge demand of income tax has been raised by the then tax employee, however, during the period June 2014 to June 2016 (long 24 months) there was complete silence from IRS functionaries representing Zone III, Regional Tax Office, Islamabad.
Being aggrieved appeal was preferred before the Commissioner (Appeals). On the basis of specific written request patently illegal demand was stayed by vide Order No 108/2016 dated 11.11.2016 in the light of provisions of Section 128(1A). Despite receiving the order, bank accounts of the Complainant were never de-attached by the tax employees working under the CIR and CCIR Islamabad. Thereafter, pending appeal was heard and decided in favour of complainant and demand was vacated for de-novo proceedings. After having order passed by the competent authority, bank accounts were not de-attached by the tax department.
It has been alleged that after lapse of 41 days finally on 28.12.2016 a letter has been received from Saad Khan wherein certain alien issues have been communicated. Instant Complaint has been moved with the hope that forum of FTO would grant an effective judicious remedy in this case in which for the first time since the promulgation of FTO Ordinance, 2000, a crucial issue has been forwarded for judicious consideration by FTO, complainant added.
The FTO is required by the terms of the statute that governs the working of the office of the FTO to unmask maladministration and recommend action to prevent its recurrence and this is exactly what the FTO has done since 2000, lawyer added.