ISLAMABAD: The Federal Board of Revenue (FBR) is under fire as its Member Legal has been formally approached regarding alleged widespread and blatant violations of the FBR’s own binding instructions.
These directives were specifically designed to prevent unnecessary litigation in cases concerning the recovery of withholding tax (WHT) defaults under Section 161 of the Income Tax Ordinance, 2001.
Concerns have been mounting over certain field formations within the FBR reportedly initiating recovery proceedings in direct defiance of a landmark order issued by the Division Bench-I of the Appellate Tribunal Inland Revenue (ATIR), as well as explicit and mandatory directives previously issued by the FBR itself. Stakeholders are viewing these actions as deliberate attempts to undermine the authority of both the appellate forum and the FBR’s established legal framework.
Prominent tax lawyer Waheed Shahzad Butt, speaking to reporters, underscored the seriousness of the situation. “It is imperative that necessary steps be taken to ensure strict compliance with the FBR’s binding instructions and the judicial pronouncements of ATIR,” Butt stated. “Any deviation from these standards amounts to administrative overreach and poses a serious risk to justice.”
Sources indicate that a formal request has been lodged with the FBR Member Legal, urging the immediate issuance of clear and unequivocal instructions to all relevant field formations.
These instructions would direct them to cease actions inconsistent with established legal precedent and the FBR’s internal guidance. Observers suggest that the matter now demands urgent and serious attention to prevent further miscarriages of justice and to safeguard the integrity of administrative and judicial processes within the tax system.
“It is deeply concerning that the binding instructions issued by the FBR have been openly violated, without any justification or explanation,” Butt added. “Such a defiant act reflects either willful disobedience or gross incompetence, both of which are unacceptable and damaging to the credibility of the tax administration.”
He further criticized the Section 161 notices generated under the command of what he termed the FBR’s “flagship entity,” citing a “glaring lack of professional diligence and legal awareness.” Butt concluded that such conduct not only undermines the department’s integrity but also exposes taxpayers to unlawful proceedings, thereby eroding public trust.
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