LAHORE: Federal Tax Ombudsman (FTO) has declared that the transfer of jurisdiction of a taxpayer 450 km away from the place of business from the tax office in Sukkur to Karachi without considering the nature of income from different businesses is maladministration.
In this regard, the FTO issued an order against the Federal Board of Revenue (FBR). According to the order, the FBR should direct the Secretary Jurisdiction to reconsider the change of jurisdiction of the complainant from Regional Tax Office (RTO) Sukkur to Medium Tax Office (MTO) Karachi.
Briefly, the complainant is an individual engaged in business as a rice dealer. The complainant also derives income as a member of AOP as a developer/builder. All of a sudden, the jurisdiction of the complainant was changed from Regional Tax Office (RTO) Sukkur to MTO Karachi i,e; 450 km away from his place of business. Hence, this complaint with the request to transfer jurisdiction from Medium Tax Office (MTO) Karachi to RTO Sukkur.
The FBR was of the view that the Board’s recent jurisdiction order dated November 30, 2023, stated that the jurisdiction of all cases of Builders & Developers of RTO Hyderabad / Sukkur/ Quetta was transferred to the Special Zone for Builders & Developers MTO Karachi.
The act of the Board to transfer cases as the class of persons is not illegal and within the ambit of powers conferred by the Income Tax Ordinance 2001 (the Ordinance). Accordingly, in the instant case, the AOP Al-Mustafa Engineers, Contractor & Developer has correctly been transferred to MTO Karachi as per policy of the Board.
FTO order added that for all practical purposes, the transfer of jurisdiction in the instant case of the complainant strictly speaking does not fall within the category of Builders & Developers.
This transfer of jurisdiction from Sukkur to 450 km away to Karachi has caused great hardship to the complainant and it is his genuine right to be taxed in the jurisdiction by facilitating him at the doorstep where his business is located and was being done.
