The Federal Board of Revenue’s (FBR) Inland Revenue (Operations) Wing has failed to comply with a lawful order issued by the Federal Tax Ombudsman (FTO) in favour of a corporate entity, raising serious concerns about non-compliance and lack of accountability within the tax administration.
According to the FTO’s recorded findings, the Corporate Tax Office (CTO), Islamabad deliberately did not submit para-wise comments on the allegations raised by the complainant, despite being under a clear statutory obligation to do so. This requirement is laid down under Section 10(4) of the FTO Ordinance, 2000, read with Sections 9(1) and 9(2) of the Federal Ombudsmen Institutional Reforms Act (FOIRA), 2013.
The omission occurred even though the FBR had issued explicit circulars instructing all field formations to file detailed para-wise replies in proceedings before the FTO. Instead of addressing the specific allegations, the department adopted what the Ombudsman described as a casual and evasive stance, merely stating that the refund application was “under process,” without responding to any point raised in the complaint.
The FTO held that such conduct amounted to neglect, inattention, and a wilful disregard of statutory duties as well as binding instructions issued by the Board. Taking serious notice of the lapse, the Ombudsman formally referred the matter to the Member Inland Revenue (Operations), FBR, advising him to personally examine the misconduct and initiate appropriate disciplinary action against the responsible officers.
Waheed Shahzad Butt, Advocate, who is representing the complainant, described the episode as a troubling indicator for the rule of law. He noted that when tax authorities themselves defy oversight institutions, it erodes taxpayer confidence and weakens accountability mechanisms. He further emphasised that the failure to submit para-wise comments is not a mere technical omission but a direct violation of law, aimed at frustrating justice and delaying relief for aggrieved taxpayers.
