Recommends FBR evolve protocol to harmonise implementation of FTO recommendations with exercise of statutory tax powers
ISLAMABAD, July 3: The Federal Tax Ombudsman (FTO) has recommended that the Federal Board of Revenue (FBR) evolve a formal administrative protocol to ensure that implementation of recommendations issued by the Ombudsman and the exercise of statutory powers under tax laws proceed in a coordinated manner, reinforcing rather than frustrating the taxpayer grievance redressal process.
The recommendation was made while disposing of implementation proceedings in a refund-related complaint. During the hearing, the Department informed the FTO that an amended assessment order under Section 122 of the Income Tax Ordinance had been passed after issuance of the Ombudsman’s recommendations.
The FTO clarified that the legality of the assessment order falls within the exclusive jurisdiction of the statutory appellate fora and, therefore, refrained from expressing any opinion on its merits.
The Ombudsman, however, observed that once recommendations are issued by the FTO, they should be implemented faithfully and in their true letter and spirit. While recognising the Department’s statutory authority to initiate proceedings under the Income Tax Ordinance wherever legally justified, the FTO emphasized that such powers should be exercised in a manner consistent with the implementation process before the Ombudsman.
The order observes that good administration requires harmonisation of statutory tax powers with implementation of the Ombudsman’s recommendations, as the two processes are intended to complement—not defeat—each other.
The FTO has recommended that FBR issue administrative instructions to all field formations for faithful implementation of Ombudsman’s recommendations and develop a Standard Operating Procedure (SOP) for cases where statutory proceedings become necessary after such recommendations have been issued.
The Ombudsman observed that the effectiveness of Pakistan’s tax grievance redressal system depends not merely on acceptance of the Ombudsman’s recommendations but on their timely, faithful and meaningful implementation, reaffirming that statutory tax powers and the Ombudsman’s recommendations are intended to operate in aid of good administration and not at cross-purposes.
