FTO intervention helps taxpayer to get withholding certificate

FTO intervention helps taxpayer to get withholding certificate

ISLAMABAD: Federal Tax Ombudsman (FTO) provided relief to a taxpayer by intervening in a matter where withholding tax certificate was denied to the taxpayer.

The Tax Ombudsman’s timely intervention has resolved a genuine taxpayers’ grievance with a withholding company, said a statement issued on Tuesday.

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It is a matter of appreciation that in order to protect Taxpayers Rights FTO has gone an extra mile to resolve the issue.

Briefly, a complainant, Ehsan Ul Haq has approached the tax ombudsman regarding the non-issuance of tax-deduction certificate by Muller & Philips Pakistan (Pvt) Limited as the withholding agent.

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Tax deduction certificates are mostly required from the withholding companies by their clients at time of submission of Income Tax returns and tax adjustments.

The tax withheld is deposited with tax authorities by withholding companies while evidence of such tax-deductions are provided by such companies to their clients.

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As tax collecting agency FBR is bound to ensure that taxes are withheld & deposited according to law. Similarly under the same tax laws the withholding agents, as compliance of their tax obligations are obligated to maintain certain record like CPRs, file periodical withholding statements and issue prescribed tax deduction certificates to the concerned withholdees for submission before tax authorities.

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FTO, accordingly, took up the matter with the withholding company and resolved the grievance of the tax payer. Upon FTO’s intervention the company issued withholding evidence of tax to the Complainant for period 01.07.2019 to 31.10.2022 without any further delay.