Rising Tension between FBR and FTO
28th July 2021
In Islamabad a report states that (FBR) has attained stay orders opposing (FTO) decision to examine the bureaus that are working with offshore tax port cases, eradicating the chance to find out reasons of only recovering $22 million out of $1.3 billion worth of cases. It doesn’t happen often when a governmental sector goes against the process to inspect corruption in the tax mechanism that is legislated by the constitutional body.
This matter appears to be imperative as this move was initiated to restrict any examination of the record that is shared with the Europe-based Organization for Economic Cooperation and Development (OECD) of Pakistan. FBR obtained multiple stay orders from several districts, two of them were against the inspection of Karachi and Islamabad Automatic Exchange of Information (AEOI) zones.
Attributable to a storm of complaints the FTO office took immediate notice and sprang an inquiry to ascertain as to why FBR’s three field offices were at the retrieval of apparently 200 billion dollars stockpiled abroad. In April FBO directed FBR to assemble nominees to enquire about the entire situation. Recently the two commissioners deferred FTO orders using court legislative orders. FTO Mushtaq Sukhera has said to have taken the issue to the president of Pakistan who in return referred them to the SA of PM.
Lawfully; the FBR could have filed representation as an appeal to the president at odds with the FTOs decision. But the FBR did not go for this legitimate path, later on, the FTO filed the suo motu action. Towards the end of March, recoveries were made but just below $22 million in the case of Islamabad and Karachi.
The FBR headquarters repossessed scarcely $19 million. The sources said that the FTO wanted to establish whether the zone in Karachi precisely made these taxations or not. Even in the case of the Islamabad zone, only just Rs305 million were salvaged. To make the investigation apparent, the FTO wanted to take an officer of the FBR nominated by the FBR chairman, but the FBR didn’t comply with the decision rather went to court complaining chairman and member IR operations for not implementing its orders to nominate the officers. But the FBR told the FTO that any additional proceeding in the case will be postponed till final clearance by the court cases.
While defending the FBR officers’ decision to appeal to the court, Dr. Ashfaq said that the FTO never gave the particulars about the objection and the name of the complainant. He said that the entire OECD information was not tortious and there were many drawbacks.
Please contact the Legal Research Institute of Pakistan for further assistance.