In a press release on Friday, the Registrar of the Federal Tax Ombudsman Secretariat termed the report incorrect.
He said that the observation that Advisers in the Regional Office Lahore, routinely summon Commissioners Inland Revenue during Complaint Proceedings and pressurize them to issue refunds of tax to Complainants, “Whether Lawful or Not” is false and is categorically denied.
The fact is that neither Commissioners nor Additional Commissioners are asked to appear before the Advisers unless special circumstances require their personal appearance to render explanation on specific points in particular cases through lawful exercise of powers conferred upon the F.T.O and delegated to the Advisers.
In not a single case, has any Adviser issued instructions unilaterally to FBR officers for issuance of tax refunds. Any correspondence between the Regional Office and FBR officials in the context of tax refunds is, invariably, directly related to implementation of the recommendations made by the Federal Tax Ombudsman when disposing of complaints. Advisers are duty bound to get all the recommendations approved by the FTO, fully implemented within the time frame stipulated in the order/statute.
In the cases referred to in the news item namely (i) C.No.80/2013 M/s. Black Gold Industry, (ii) C.No.1123/2013 M/s. Irfan Textile Mills (iii) C.No.337/2013 M/s. Siddique Iron Industry (Pvt) Ltd. and (iv) C.No.1399/2013 M/s. US Demin Mills (Pvt) Ltd., the FBR/Inland Revenue Department neither filed Review Petitions before the FTO nor preferred Representations before the Hon’ble President of Pakistan against the recommendations issued by the FTO.
In such an eventuality, the recommendations have attained finality. The FBR, therefore, is bound under the law, to fully implement the recommendations before taking any other action. In complaint No.1398/2013 M/s. US Apparel (Pvt) Ltd., the department gave a written undertaking to issue refund, as per law, but subsequently filed a Representation before the Hon’ble President of Pakistan which is still sub-judice.
The Hon’ble President of Pakistan when disposing of departmental representations against FTO’s recommendations for issuance of due refund, has invariably directed that no action may be taken by FBR before first implementing the FTO’s recommendations. FBR too has strictly directed field formations, in writing, to fully implement the FTO’s recommendations in such cases within the time given in the FTO’s order and not to take any other action without first doing so. The Advisers take cognizance of any violation of the President’s decision and the FBR instructions by the field officers and draw their attention to the serious lapses whenever the same occur.
As regards the observation that Advisers pressurize FBR officers to ‘break the queue’ and issue refund ‘out of turn,’ this again is a patently misleading statement.
The fact is that the FTO makes time bound recommendations in his order disposing of a complaint and Advisers monitor implementation of the same.
Again, the FBR has also directed FBR field officials, in writing, not to delay issuance of refund under any pretext in cases where the FTO or any competent Court, has directed that refund be issued even if that entails ‘breaking the queue.’
The observation that the Advisers in the Regional Office Lahore were taking undue interest in issuance of tax refunds in Steel and Textile sector cases is bereft of any objective basis whatsoever. The fact is that almost 80% of the complaints received in the FTO Office from all categories of taxpayers pertain to unwarranted delay by departmental officers in issuance of refund and the Advisers monitor implementation of the FTO’s recommendations in all the complaints disposed of requiring speedy administrative justice.
The statement that an Adviser employed in the Regional office Lahore was also working as a Tax Consultant is malicious and scandalous and conduct of Advisers is closely/analytically monitored.
