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Home Breaking News

FTO seeks explanation from FBR officials for noting taking measures to recover tax from China-based company

byCT Report
24/08/2023
in Breaking News, Lahore, Latest News, Slider News
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LAHORE: The Federal Tax Ombudsman (FTO) has summoned member operations, Federal Board of Revenue (FBR), chief commissioners Corporate Tax Office and Regional Tax Office, Lahore to explain the reasons behind not taking measures to recover unchallenged huge tax demands from a China-based company for the tax years, 2007, 2008, 2009, 2011, and 2012.

It is reliably learnt that summons have been issued in a public interest complaint moved by a Lahore-based tax lawyer, Waheed Shahzad Butt, against the FBR officers for their long meaningful silence to recover unchallenged tax demand runs into Rs632 million. The FTO had issued notice to the FBR officers to appear FTO Regional Office at Lahore on August 24, 2023.

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Butt told that the FBR has failed to initiate any action or take measures to recover unchallenged tax demands from China-based company on the basis of orders passed u/s 122(5A) of the Income Tax Ordinance 2001 read with (2022 PTD 1839) for the Tax Years 2007, 2008, 2009, 2011 and 2012.

In this case, a Chinese company with principle activity of electrical installation, claimed huge illegal refunds. After conducting a post-refund audit for the tax years 2007, 2008, 2009 and 2011, the director I&I Lahore also issued an investigation report to the CCIR, Lahore.

What sort of efforts have been made by “FBR-HQ, CRTO, CTO, RTO Lahore” for recovering huge legitimate unchallenged tax demand from Chinese companies as admitted/confessed by a senior IRS/BS-21 officer vide letter dated 19.12.2019.

Why legal proceedings under Section 122, 122(5A), 221 or 162 have not been initiated by the concerned wise tax employees posted at CRTO/CTO/RTO Lahore to recover the legitimate unchallenged tax demand for the tax year 2010? Why legal proceedings under Sections 182 and 205 of the Income Tax Ordinance, 2001 have not been initiated by the concerned tax employees posted at CRTO/CTO/RTO Lahore to recover the legitimate unchallenged tax demand, the complainant added.

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