Tax officials warned of strict action for private consultancy

Tax officials warned of strict action for private consultancy

ISLAMABAD: Federal Board of Revenue (FBR) has warned all the officials of the apex tax agency of disciplinary action if found involved in private consultancy.

The FBR issued a circular dated April 28, 2022 titled bar against indulging in private consultancy / tax practice by officials of the FBR.

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The Federal Tax Ombudsman (FTO) initiated an own motion investigation regarding private practice by employees of the FBR who joined local chambers or even opened their own law offices and render legal assistance to taxpayers in the evening or even during office hours.

“Findings were recorded that many of the officers / officials of FBR associate themselves with different taxpayers and provide legal assistance to them in various taxation matters in total disregard of the instructions under the Government Servants (Conduct) Rules, 1964 whereunder no government servant is allowed to engage in any trade or undertake any employment or work, other than his official duties, except with the previous sanction of the government,” the FBR said.

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Furthermore, Estt, Div.’s O.M. No. 1/20/76-D-IV dated 6-3-1976 contains clear prohibitions regarding undertaking of private work by the government servants, it added.

The FBR further said it had also issued instructions already on July 03, 2019 on the matter and advised all its employees not to indulge in any private consultancy / tax practice.

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FBR chairman took a serious view of the matter and all FBR employees are again directed to completely abstain themselves from private consultancy / tax practice.

“Inland Revenue Operation Wing is putting in place a strong monitoring mechanism to ensure the compliance of FTO instructions,” the FBR said, adding that in future any officer / official is found involved in such practice, strict disciplinary action would be taken under Civil Servants (E&D) Rules, 2020.