ISLAMABAD: The Supreme Court (SC) on Wednesday declared the registration of FIRs and arrests of taxpayers unconstitutional. The court stated in its verdict that determining tax liability and granting the right to appeal is a constitutional requirement.
A written judgment was issued by a SC bench comprising Justice Shahid Waheed, Justice Irfan Saadat Khan, and Justice Aqeel Abbasi. The verdict stated that granting the FBR (Federal Board of Revenue) the authority to initiate criminal proceedings under an SRO (Statutory Regulatory Order) is against the Constitution and the law. Arresting taxpayers without a hearing is a clear violation of Articles 4 and 10-A of the Constitution.
The written judgment further noted that initiating criminal proceedings at the preliminary stage of a tax dispute is against the principles of justice. FBR registering cases directly is an overreach of its powers. According to the law, it is essential to first determine the amount of tax due and then proceed through legal channels.
The judgment emphasised that no citizen can be declared guilty without being given the right to defend themselves, and until tax liability is legally established, criminal charges are unwarranted.
This ruling is being seen as a significant step forward in the protection of taxpayer rights and the implementation of tax reforms in the country.
