FTO directs FBR to enforce tax refunds

The federal tax ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to implement the Appellate Tribunal Inland Revenue (ATIR) order in tax refunds matters and called explanation of the commissioner concerned for serious lapse of maladministration.

FTO Dr Asif Jah has ordered that if no stay order is available, the order passed by the ATIR in tax refunds matters will be implemented. He directed the commissioner concerned to implement the decision of ATIR.

According to a press release, the FTO also directed Member-IR (Operations) to call an explanation from the commissioner concerned for a serious lapse of maladministration and submit the report with his comments to the FTO office.

"Complainant has filed review on the grounds that the combined order is based on misreading, non-reading of binding orders by Islamabad High Court on the issue. The complainant further stated that the High Court has explicitly rejected/discarded the Ombudsman's view point …" the FTO order said.

"The contention of the learned counsel for the tax department is that because a tax reference has been pending against the refund order passed by the Tribunal, wherein, no injunctive order has been issued, a refund has not been processed," the order added. However, the FTO order stated that the lawyer had failed to "adduce any provision of law or any case law which established that the filing of reference creates sufficient cause for the tax department" to defy an order of the tribunal which was in the field.

"This neglect on the part of the commissioner concerned shows inefficiency in discharge of duties which constitutes maladministration," it said, adding that the crux of the judgments was that if no stay order had been available, the order passed by the ATIR will be implemented.