FBR Introduces New Recovery Protocol to Safeguard Taxpayers

FBR Introduces New Recovery Protocol to Safeguard Taxpayers

Islamabad: The Federal Board of Revenue (FBR) has implemented a new recovery protocol for Inland Revenue field formations in Islamabad. The main objective of the protocol is to prevent the illegal attachment of taxpayers’ bank accounts and to comply with an interim order from the Islamabad High Court (IHC) in Writ Petition No. 229812016.

Key directives include:

  1. The proper jurisdiction of Inland Revenue officers must be ensured.
  2. The Income Tax Ordinance, 2001, must adequately serve notices.
  3. Orders should only be issued after giving taxpayers a fair opportunity to be heard.
  4. Recovery measures under sections 138 and 140 can proceed only after the statutory payment period specified in section 137(2) has lapsed.
  5. No further action should be taken to recover taxes once court or stay orders are received from relevant authorities.
  6. The protocol highlights distinct regulations for the recovery process under sections 138 and 140 of the Income Tax Rules, 2002.
  7. If tax recovery is to be done through bank account attachment under section 140, it is mandatory to seek prior approval from a committee headed by the Chief Commissioner of Inland Revenue.
  8. Zonal Commissioners are advised to use their discretion while filing legal applications or civil petitions that involve questions of law.

This initiative underscores FBR’s commitment to ensuring a fair and transparent tax recovery process. For the latest Real Estate News and Blogs, visit Realtorspk blogs.

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