ISLAMABAD: Expressing grave concerns over gruesome delay in fixing tax refund claims at FBR, the Federal Tax Ombudsman (FTO) has recommended FBR to induce timely payment of tax compensation at headquarters and field offices.
FTO stated this in view of a complaint filed by Descon Oxychem Limited, against non-issuance of sales tax refund for tax periods July to October, 2014.
Commenting on the issue of delaying tax refunds claims, FTO stated: “this delay can only be eliminated if FBR and its field offices are compelled to pay compensation in return of admissible claims.”
Referring to the complaint, FTO observed that FBR failed to process refund claims filed by the complainant for tax periods i.e. July – August, 2014 on January 13, 2015 and May 29, 2015 respectively within 38 days of their filing.
In light of the above mentioned findings, the FTO also observed that delay in processing refund claims complaint beyond 38 days as tantamount to maladministration which was committed by FBR office while dealing with this complaint.
After examining the related facts, FTO also questioned FBR complaint dealing system as the aforementioned complaint was pending with FBR system for months despite lapse of lawful period framed for clearing complaints.
In the complaint, the complainant had alleged the FBR for using Risk Management System (RMS) based wrong criteria of fixing input values below 3.5 percent of export value to divert refund claims from Expeditious Refund Processing System (ERS) to normal processing where these were delayed deliberately.
The complainant prayed the FTO to direct department (FBR) may be directed to pay additional payment (compensation) for delay in payment of refund claims.
However, in response of this complaint, the FBR, through its reply, informed the FTO inquiry that complainant company’s refund claims were being processed under normal system. The department also submitted that refund claims were initially filed through ERS which were not cleared by RMS of FBR IT.
FBR further viewed before FTO that company actually had no grievance to report rather the filed complaint was a pressure tactic to get refund claims cleared.
