KARACHI: Karachi Tax Bar Association (KTBA) has criticized the tax authorities for restricting the service of tax notices to electronic means.
The tax bar in a letter to the chairman of Federal Board of Revenue (FBR) sent on Wednesday expressed its distress over the decision of the tax authorities to make electronic servicing of notices as sole way.
The KTBA said that Section 218 of the Income Tax Ordinance, 2001 provided four different methods for servicing of notices and those methods are alternate to others.
The tax bar further said that the FBR in a clarification issued on February 22, 2018 itself made it clear that the electronic means of service the notices were an alternate way and had no legal worth.
However, through another notification issued on February 03, 2021 the previous clarification had been withdrawn for making electronic mean of servicing as legal method.
Further, the rules notified by the FBR have made the electronic servicing as the only way for sending the tax notices.
“We, at KTBA, feel that the earlier clarification issued by FBR on February 22, 2018 was a material of good reading of the statute and was very much in accordance with the law while the new clarification issued now by FBR, after the lapse of almost three years, on February 03, 2021 is a result of bad reading of statute not in accordance with the law.
“We are sorry to say that it tantamount to a ‘U- Turn’ taken by FBR after three years. Over here we would like to mention that this change of mind and issuing the revised meaning or clarification of sections 218(1) and 218(2) of issuing the notices etc. from personally and electronically both the modes to only by electronic mode, after three years, would tarnish the image of FBR and would not only be counterproductive but detrimental also,” according to the KTBA letter.
The KTBA said that the procedure of service of notice and other documents electronically has been provided under Rule 74 of the Rules, 2002, which prescribes specific method of service and in the past the same was also not being followed by the FBR till the meeting with representatives of KTBA in late September 2020 after which intimations of new notices and assignments are now being sent to the taxpayers.
In view of the above submissions, the tax bar urged the FBR chairman to withdraw the new and harsh clarification issued on February 03, 2021 and restore the earlier clarification of February 22, 2018.
