LAHORE: Federal Tax Ombudsman/Minister of State Dr Asif Mahmood Jah held that excessive or exaggerated tax demands from business community by Federal Board of Revenue falls under the purview of maladministration.
It was stated by honorary Coordinator to FTO Meher Kashif Younis former senior Vice President Lahore Chamber of Commerce and Industry (LCCI) while talking to delegation of traders led by Shahid Nazir. Briefing the delegation about the working of the FTO to help resolve the tax related genuine issues of tax payers,he said FTO in a complaint categorical observed that such injustice and lapses on the part of FBR will never be tolerated and on the other hand FTO also viewed that lawfully admissible taxes must also be paid timely to run the affairs of the state.
Meher said that FTO taking strong exception has barred the FBR from excessive tax deductions from the pays and wages of the low paid employees.He explained to the delegation that in order to determine “Employers-Employee Relationship” for the purpose of taxation under the income tax ordinance 2001,the basic parameters was the existence of a “ Master-Servant Relationship”between the persons.
He advised the members of delegation that regular/adhoc/temporary/daily wages are all different shades and forms of employment and the law does not creates any distinction among all these forms.He said now FBR after accepting the FTO legitimate observation,issued a well worded clarification in this regard.
Meher Kashif Younis said that its good omen that Accountant General Pakistan has already implemented the FTO findings and now all low paid contract employees at FTO office received their salaries without deductions of income tax which is also equally applicable in all identical cases across the country.
He said any aggrieved tax payer can contact nearest FTO regional offices either by person or in writing application through ordinary post or email or WhatsApp or telephone in case of emergency or submit application to him to help addressing their grievances with 60 days as ordered by FTO.
