Tax Ombudsman calls for stronger coordination between statutory tax powers and grievance redressal to enhance taxpayer confidence.
ISLAMABAD: The Federal Tax Ombudsman (FTO) has recommended that the Federal Board of Revenue (FBR) formulate a formal Standard Operating Procedure (SOP) to ensure that the implementation of the Ombudsman’s recommendations is effectively coordinated with the exercise of statutory powers under Pakistan’s tax laws.
The recommendation was made while disposing of implementation proceedings in a complaint concerning an income tax refund, according to an official statement issued on Saturday.
During the proceedings, FBR officials informed the Ombudsman that an amended assessment order had been issued under Section 122 of the Income Tax Ordinance, 2001, after the FTO had already issued its recommendations in the case.
The Ombudsman clarified that the legality of the amended assessment order falls within the exclusive jurisdiction of the statutory appellate forums and therefore refrained from commenting on its legal validity.
However, the FTO stressed that once its recommendations have been issued, they should be implemented faithfully and in both letter and spirit.
While acknowledging the FBR’s statutory authority to initiate proceedings under the Income Tax Ordinance wherever legally justified, the Ombudsman emphasised that such powers should be exercised in a manner that supports, rather than undermines, the implementation of recommendations issued through the tax grievance redressal process.
FTO calls for improved administrative coordination
The Ombudsman observed that sound public administration requires effective harmonisation between statutory tax powers and the implementation of Ombudsman recommendations, noting that both mechanisms are intended to complement each other rather than operate at cross-purposes.
To strengthen Pakistan’s tax grievance redressal framework, the FTO recommended that the FBR:
• Issue administrative instructions to all field formations to ensure the faithful implementation of FTO recommendations.
• Develop a comprehensive Standard Operating Procedure (SOP) for cases where statutory proceedings become necessary after the Ombudsman has issued recommendations.
• Enhance coordination between tax enforcement actions and the implementation of grievance redressal decisions to minimise administrative conflicts.
Enhancing taxpayer confidence
The FTO said the effectiveness of Pakistan’s tax grievance redressal mechanism depends not only on the acceptance of Ombudsman recommendations but also on their timely, meaningful and complete implementation.
The Ombudsman reiterated that statutory powers available under tax laws and the recommendations issued by the FTO should function in harmony to promote transparency, fairness and good governance within the tax administration.
According to the FTO, adopting a structured administrative framework for implementing its recommendations would strengthen institutional coordination, improve dispute resolution and reinforce taxpayer confidence in Pakistan’s tax system.