Copyright brecorder
ISLAMABAD: Federal Tax Ombudsman (FTO) Dr Asif Mahmood Jah in a landmark order has held that there exists clear maladministration on the part of Federal Board of Revenue (FBR) and its technical arm Pakistan Revenue Automation (Private) Limited (PRAL) in the discharge of their assigned duties and responsibilities. The FTO, while deciding a complaint filed by Karachi-based lawyer Shiraz Khan, directed the FBR to revamp its “FBR Helpline” by constituting a dedicated technical team comprising experts from both FBR and PRAL, ensuring their availability during working hours (0900 hrs to 1700 hrs) for the timely resolution of taxpayers’ technical issues. Speaking to this correspondent, tax lawyer Waheed Shahzad Butt, who represented the complainant before the FTO, said that the order is a wake-up call for the authorities. Probe into maladministration charges: FBR reluctant to file comments before FTO “It is high time for the Prime Minister Shahbaz Sharif to revamp the FBR and its Information Technology wing to truly facilitate taxpayers and modernize the taxation system of Pakistan,” he emphasized. The decision is being hailed as a significant step toward taxpayer facilitation and improved governance within the country’s tax administration framework, Butt added. The complaint was specifically filed against the Director General (IT), FBR, Islamabad, and the Chief Executive Officer, PRAL, for their failure to address persistent technical glitches affecting the tax filing and registration systems. After detailed proceedings, the FTO concluded that their inaction amounted to maladministration, adversely affecting taxpayers’ facilitation and confidence in the national tax system. FTO order states: “Situations clearly reflect maladministration by FBR & PRAL’s functionaries in the administration and discharge of assigned duties & responsibilities. One of the very recent examples is the failure of FBR to upload and notify the manual income tax return for the Tax year 2025 in terms of Rule 73(2DD) for an individual declaring taxable income less than one million rupees. This issue was raised, and this forum directed the Member IR Operations to ensure uploading the tax return for the Tax year 2025 immediately. It is emphasized that the FBR should recognize the gravity of the situation, as negligence and system-related failures on such critical due dates expose taxpayers to penalties for non-compliance due to no fault on their part. The FBR should issue timely public advisories.” It appears that the work of FBR Helpline is not monitored properly, leading to discontentment, feelings of despair, and trust deficit between FBR and taxpayers. It is directed that FBR should strictly follow the comprehensive timeline prescribed under Rule 34A of Income Tax Rules 2002 for income tax returns in the future and revamp the “FBR Helpline” by constituting a dedicated team containing experts from FBR & PRAL, available at least during working hours from 0900 hrs to 1700 hrs for the resolution of the technical issues of sales tax and income tax, FTO ordered. Copyright Business Recorder, 2025
