LAHORE: Federal Tax Ombudsman (FTO) Zafar Hijazi has directed an investigation into allegations of deliberate negligence and inefficiency by Federal Board of Revenue (FBR) officials, which reportedly resulted in significant revenue losses through filing time-barred appeals before High Courts.
The probe follows a public interest complaint filed by the Chairman of the Lahore Tax Bar Association Public Interest Litigation Committee (LTBA-PILC). The complaint alleges that FBR’s Legal Wings systematically filed appeals and tax references after limitation periods had expired, enabling taxpayers to have cases dismissed on technical grounds and causing billions of rupees in lawful revenue to lapse.
The FTO has issued notices to the Secretary Revenue Division, Member-IR (Legal), and Member-IR (Operations), seeking detailed comments and explanations on the allegations.
Tax lawyer Waheed Shahzad Butt emphasized that the investigation should examine the role of FBR’s legal and supervisory hierarchy in safeguarding revenue and ensuring adherence to statutory timelines. The complaint notes that despite repeated judicial rulings, no disciplinary action has been taken against responsible officials.
