ISLAMABAD: The Federal Tax Ombudsman (FTO) has directed Member Operations Inland Revenue, Federal Board of Revenue, to ensure the presence of Chief Sales Tax Operations before the Adviser to FTO on 16-Sept-2025, in connection with wilful defiance of an unchallenged order passed by the FTO.
When contacted, tax lawyer Waheed Shahzad Butt told Business Recorder that a “new novel mode” has been adopted by some officers within FBR whenever the issue involves returning taxpayers’ money in the form of refunds.
Waheed pointed out that the Chief Justice of the Islamabad High Court has already delineated the jurisdiction of the FTO to initiate contempt proceedings under Section 16 of the FTO Ordinance, 2000, in W.P. No. 1238/2013.
The court held that the pivotal question was whether, under Article 199 of the Constitution, the High Court could interfere with or set aside the action of the FTO initiated under Section 16 of the FTO Ordinance. The court categorically ruled that it could not interfere, since the FTO enjoys mutatis mutandis, the same powers as the Supreme Court in punishing contempt.
The power being exercised by the FTO is parallel to the powers of Apex Court, and against such action, a statutory right of appeal lies directly before the Supreme Court under section 16(2) of the Ordinance, Waheed elaborated.
The tax lawyer emphasised that the FTO must move ahead with contempt proceedings against FBR officers involved in delaying payment of refunds.
Copyright Business Recorder, 2025
