FBR takes measures to safeguard taxpayers

Islamabad: The Federal Board of Revenue (FBR) has rolled out a fresh recovery protocol for the Inland Revenue field formations aimed at preventing the unlawful attachment of taxpayers’ bank accounts, as claimed in a news article published on February 20.

Read: FBR reports 30% YoY growth in tax collection target

As per the latest instructions from the FBR, in replacement of previous guidelines and alignment with the interim order of the Islamabad High Court (IHC) in Writ Petition No. 229812016, the following directives will be enforced by field formations for tax recovery and the submission of reference applications or civil petitions for leave to appeal:

• Zonal Commissioners are responsible for ensuring the correct jurisdiction of Inland Revenue officers over taxpayers.
• Notices must be served correctly as per the Income Tax Ordinance, 2001.
• Orders under the Ordinance should only be issued after giving the taxpayer a fair opportunity to be heard.
• Recovery measures under sections 138 or 140 can only be initiated after the statutory period for tax payment provided under section 137(2) has elapsed.
• No further tax recovery steps should be taken upon receiving a court order restraining tax recovery.
• Similarly, no additional actions for tax recovery should be initiated upon receiving a stay order from the Appellate Tribunal Inland Revenue or the Commissioner Inland Revenue (Appeals).
• Recovery proceedings under sections 138 and 140 have separate rules under the Income Tax Rules, 2002.
• A notice under section 138(1) must be issued, giving taxpayers a seven-day period to make payment before commencing recovery proceedings under section 140.
• Tax recovery through bank account attachment under section 140 requires prior approval from a committee chaired by the Chief Commissioner Inland Revenue.
• Zonal Commissioners should use discretion when filing reference applications or civil petitions for leave to appeal in cases involving a question of law.