As part of an investigation into the unlawful tax recovery from Islamabad Electric Supply Company (IESCO) via bank account attachment, the Federal Tax Ombudsman (FTO) has requested an explanation from the Member Inland Revenue (Operations) Federal Board of Revenue and Chief Commissioner-IR of the Large Taxpayer Office (LTO), Islamabad.
Secretary Revenue Division, Member IR-Operations, and Chief CIR, LTO Islamabad were all notified by the FTO’s office to attend for hearing on August 4, 2023 with all relevant records and witnesses in response to the IESCO’s complaint.
To determine whether or not there has been maladministration, the FTO will investigate claims that LTO employees have been unlawfully harassing taxpayers (IESCO) by using the same authorities as IRS employees to do so.
For allegedly illegally recovering huge funds from the bank accounts of IESCO without following due process of law and in extreme contempt of orders passed by the Islamabad High Court, lawyer Khurram Shahzad informed that a complaint has been lodged against employees posted at Zone-II, LTO Islamabad, and the former chief commissioner LTO.
Additional allegations about tax were made by the complainant,
Additional allegations were made by the complainant, including that “Data/evidence revealed some shocking facts that LTO tax employees are practically involved in the issuance of recovery notices without lawful jurisdiction to the banks of the complainant.”
Respondents are in direct violation of 2016 PTD 1799, 2021 PTD 162, 2022 PTD 760, and 2022 126 TAX 584, as well as Sections 48, 11B, 2(2a), 2(5aa), 2(21), and 2(34) and Rules 71(1), 71(2)(b) & 71(2)(d), 72, 73, and 74 of Chapter XI (Recovery) of the Sales Tax Rules, 2006.
The complainant further alleges that unlawful notices containing “arrest threats” were issued to the banks in an abuse of authority. According to the FTO ruling, those responsible for illegally recovering from the IESCO may face disciplinary and criminal proceedings.
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