06 Nov 2024, Islamabad: In a substantial advancement for taxpayer rights and fair tax administration, the Office of the Federal Tax Ombudsman (FTO) has seen impressive strides under the leadership of Honorable Dr. Asif Mahmood Jah. Since its inception in 2000, the FTO office faced hurdles, such as limited engagement and responsiveness. However, with Dr. Jah, an accomplished tax expert, taking the reins, the office has undergone a significant transformation, increasing both the volume and the efficiency of complaint resolutions.
Over the past ten months, the FTO Secretariat received 10515 complaints, of which 9900 have been resolved an impressive uptick from previous periods. Highlighting this achievement, Advisor Legal, and Mr. Almas Ali Jovindah, emphasized the notable progress made. Particularly, the proactive use of Section 33 of the FTO Ordinance, aimed at informal dispute resolutions, has surged, streamlining the resolution process for taxpayers.
A key impact of the FTO’s intervention has been the expedited processing of delayed tax refunds. In just ten months, Rs 2.00 Billion was refunded to taxpayers, a marked increase from Rs17.742 Billion in 2023. Additionally, Dr. Jah has championed a record number of 31 own-motion investigations, addressing systemic issues within the tax administration, reaffirming the and aFTO’s dedication to eradicating taxpayer grievances. In the first ten months of the current calendar year, the number of complaints has increased by 67% and we have conducted 117outreach sessions in 2024.
The FTO’s performance has also been bolstered by a seasoned advisory team conducting extensive outreach efforts to educate the public on their tax rights. This has fostered greater awareness and trust, with taxpayers feeling more secure in seeking redress from the institution. Technological advancements have further revolutionized the adjudication process. The integration of paperless and remote hearing solutions, such as custom Zoom links, has made proceedings more efficient and accessible for taxpayers worldwide, benefiting individuals in the United States, Canada, Saudi Arabia, and China.
A recent case exemplifies this commitment: the FTO issued recommendations to the Federal Board of Revenue (FBR) on unjustified withholding tax deductions by the Punjab Council of Arts and Culture. The decision corrected tax practices to align with the Income Tax Ordinance, ensuring that low-income individuals were not burdened unfairly.
Furthermore, the FTO has taken a strong stance against FBR’s SRO 350(I)/2024, which inadvertently disrupted sales tax filings and business operations. The FTO has urged FBR to rectify these issues by simplifying filing processes, providing guidelines, and updating the IRIS system to support compliance without hindrance. The call for an automated system to recognize mutual transactions between buyers and sellers reflects the FTO’s commitment to convenience and fairness in tax administration.
Additionally, the FTO’s investigation into a significant cybersecurity breach that resulted in fraudulent transactions revealed critical weaknesses in FBR’s data security. The cyberattack led to Rs 81.43 billion in fraudulent transactions and a tax loss of Rs 14.66 billion. The FTO demanded immediate action to secure taxpayer data and apprehend the culprits, pushing FBR to implement robust cybersecurity measures.
These developments underscore the FTO’s expanding role and renewed commitment to transparency, accountability, and the protection of taxpayer rights. Through decisive action and strategic reforms, the FTO continues to set new benchmarks for efficiency and fairness in Pakistan’s tax administration.
Editor: Kamran Raja