Key Takeaways
- President Asif Ali Zardari upheld an order by the Federal Tax Ombudsman regarding FBR data confidentiality.
- The order pertains to the handling of taxpayers' confidential information, preventing unauthorized disclosure.
- The FBR had challenged the order but was dismissed by the President.
President Asif Ali Zardari has upheld an order by the Federal Tax Ombudsman (FTO) that Federal Board of Revenue (FBR) field officials must ensure the confidentiality of taxpayers' data during official purposes.
The case involved six complaints filed by Dr Usman Iqbal Aujla and others, alleging unauthorized sharing of classified tax information in the assessment orders of other family-member taxpayers.
The complainants argued that reproducing one taxpayer’s confidential financial information in another taxpayer’s assessment order violated Section 216 of the Income Tax Ordinance, 2001.
The FBR contended that the information was already available on official records and that Section 216(3)(a) permitted disclosure to persons acting in execution of the Income Tax Ordinance where necessary for its purposes.
The FTO observed that disclosure of personal information, including wealth statements and financial transactions, to unauthorized persons was prohibited under Section 216 of the Income Tax Ordinance.
The Ombudsman directed the Chief Commissioner Inland Revenue, RTO Gujranwala, to examine the relevant assessment orders and take action to ensure confidential information was no longer disclosed or accessible to unauthorized persons.
The FBR challenged the FTO order, arguing that the Ombudsman had no jurisdiction to review an order previously passed in the exercise of review jurisdiction.
The representation was heard on August 27, 2026, with Commissioner Waqas Hanif appearing on behalf of the FBR.
The competent authority observed that every taxpayer, irrespective of relationship with another taxpayer, is legally required to file a tax return and that each return must be examined on its own merits.
