The Federal Board of Revenue (FBR) has taken serious notice of an incident involving a tax official (deputy commissioner Inland Revenue, Regional Tax Office (RTO) Islamabad) who recovered amount from a company's bank account, where stay order has been granted by the Appellate Tribunal Inland Revenue, to meet revenue collection targets.
Sources toldBusiness Recorder here on Wednesday that such incidents have been brought to the notice of the FBR where tax officials attach bank accounts and recover amounts to show increased revenue collection. This has been happened in cases where stay order has been granted by the judicial fora. In a latest incident, a case was pending before the Appellate Tribunal Inland Revenue Islamabad and recovery was made from the bank account of the taxpayer. The court had barred the FBR from attachment of bank account/recovery till final order. Despite stay order of the court, the official recovered the amount from a computer importer which has now been retuned to the taxpayer.
Sources said that taxpayer has also won the case at the level of Appellate Tribunal Inland Revenue Islamabad. The office of the Federal Tax Ombudsman (FTO) has also directed the FBR to return the money to the computer vendor and also issue a warning to the concerned tax officials.
The FBR has also issued a stern warning to the said official to avoid such actions in future. The said deputy commissioner-IR should strictly observe the relevant rules and regulations in future or face disciplinary action of the FBR. Now the said deputy commissioner-IR has been transferred to Peshawar, sources said. According to the FBR's warning letter issued to deputy commissioner Inland Revenue Islamabad, it has been reported by the Chief Commissioner, Regional Tax Office, Islamabad that the said deputy commissioner-IR (BS-18) in case of a unit in response to the letter of bank emphasised the bank to clear the pay orders even when bank informed that the stay is available and the instruments will be cleared at FBR's risk and liability. The bank had also informed that the pay orders have been returned to National Bank of Pakistan with remarks that stay has been granted by the Tribunal and requested FBR to return the pay orders to the bank.
The competent authority has taken a serious view of the above and decided to issue a warning to said deputy commissioner-IR (BS-18). The said deputy commissioner-IR (BS-18) is accordingly warned to be careful in future and is required to strictly observe the relevant rules and regulations "failing which you (said deputy commissioner-IR will be liable to strict disciplinary action," the FBR warning letter added.