Key Takeaways
- The Federal Tax Ombudsman has declined a review petition.
- However, the Ombudsman directed an examination of alleged maladministration in separate issues.
- The order emphasizes the importance of accurate and verifiable factual assertions.
In Islamabad, the Federal Tax Ombudsman has ruled against a review petition challenging its earlier findings in Complaint No. 02924/LHR/ST/2026. The decision highlights that no error was apparent on the face of the record to justify reopening the case.
Despite this ruling, the Ombudsman directed the Inland Revenue authorities to undertake a comprehensive examination of an administrative issue that emerged during the review proceedings. This issue pertains to alleged maladministration related to payments received from the taxpayer during investigation and their subsequent treatment while implementing the order of the Appellate Tribunal Inland Revenue (ATIR).
The Federal Tax Ombudsman’s order explains that the original findings correctly reflected the factual record available at the time they were made. Therefore, these findings could not be reopened merely because additional material surfaced later. However, during the review proceedings, complete official records revealed a distinct administrative issue.
Specifically, the production of these records disclosed discrepancies in how payments from the taxpayer were accounted for and treated while processing their claim. The Ombudsman observed that legal issues arising from the underlying tax dispute are currently pending before the Lahore High Court. Nevertheless, such pendency does not absolve the tax administration from its duty to correctly account for taxpayers’ payments.
To address these concerns, the Chief Commissioner Inland Revenue has been directed to conduct a comprehensive examination of all payments received from the complainant. This exercise is aimed at verifying their legal character and determining whether due effect was given to each payment. The Ombudsman further ordered that a reasoned speaking order be passed after providing the taxpayer a full opportunity of hearing.
Where any omission, computational error or other instance of maladministration is found, corrective action has been ordered in accordance with law. This exercise must be completed within sixty days, with compliance to be reported to the FTO Secretariat within fifteen days thereafter.
The order also reiterated an important principle governing proceedings before statutory adjudicatory forums. It emphasized that while parties are fully entitled to advance competing legal arguments, factual assertions must remain accurate, complete and capable of verification from official records. The Ombudsman further observed that professional decorum and measured advocacy strengthen the administration of justice.
The recommendations in this order neither reopened the earlier findings nor expressed any opinion on issues pending before the Lahore High Court. Their sole purpose was to ensure administrative accountability by examining and resolving a surviving issue of alleged maladministration strictly within the jurisdiction conferred upon the Federal Tax Ombudsman under the law.
