According to a communication of Javed Iqbal Qazi, chairman Pakistan Tax Advisors Association (PTAA) to the FBR here on Tuesday, during a virtual meeting with industrialists to resolve their liquidity issues, Advisor to the Prime Minister on Finance Dr Hafeez Sheikh directed the FBR chairperson to ensure early release of due refunds, but we understand that instructions have been passed on to the FBR officials to issue refunds only in those cases in which amended orders have been passed u/s 177/122(5) or 122(5A) of the Income Tax Ordinance, 2001 and not to be issued in all other cases where orders under section u/s 120 have been passed.

These directions are against the policy of the prime minister and his cabinet.

It is therefore requested, that income tax refunds be issued to the taxpayers without any discrimination and in case any discrepancy is discovered latter on, in such cases Amendment u/s 122(5A) of the Income Tax Ordinance, 2001 can be easily made subsequently after confronting the material evidence to the taxpayers, Qazi said.

The FBR officials should try to facilitate the taxpayers for the implementation of the policy of the prime minister and his cabinet, he said.

In view of this, all chief commissioners of Inland Revenue be directed to issue refunds in all those cases where amended orders have been passed u/s 177/122(5) or 122(5A) and even in all other cases where orders u/s 120 of the Income Tax Ordinance have been passed and there should be no discrimination.

An early action on your part will enable all the taxpayers who have genuine refunds to their credit to pay off their liabilities well in time, the chairman PTAA said.

Copyright Business Recorder, 2020