MULTAN: In a recent legal victory, a corporate taxpayer successfully challenged the coercive measures employed by tax authorities for the recovery of tax dues.
Sources reveal that due to the tax authorities’ failure to specify a reasonable payment timeframe, the taxpayer received reimbursement for the amount recovered from their bank account.
The taxpayer argued that the recovery against tax dues was conducted without issuing prior notice as required by law, deeming it a coercive measure.
Despite being granted an opportunity for a hearing before the reassessment of the e-return, the authorities proceeded with recovery proceedings by attaching bank accounts without proper notification.
Highlighting the importance of due process, fair trial, and access to justice, the taxpayer emphasized the obligation of revenue functionaries to exercise their authority in a manner that upholds taxpayers’ rights.
Regardless of the outcome of assessments by higher authorities, tax authorities must adhere to legal procedures and issue notices before resorting to coercive measures.
The competent authority endorsed the taxpayer’s stance, emphasizing the necessity of specifying a reasonable timeframe for tax payment. It was underscored that such a timeframe should not be less than seven days to afford taxpayers the opportunity to discharge their obligations and exercise their statutory right of appeal.
Consequently, the recovery proceedings were set aside for not complying with the mandatory requirement of issuing a notice under the relevant provision of the law. The competent forum directed the authorities to ensure the reimbursement of the recovered amount or credit it back to the taxpayer’s bank accounts.
This ruling underscored the significance of procedural fairness and adherence to legal requirements in tax matters, ensuring the protection of taxpayers’ rights and upholding the principles of justice.
