KARACHI SALES TAX BAR ASSOCIATION

khushnoodk@gmail.com
taxes1@cyber.net.pk
Phone Nos. 9221-4384625,

9221- 4384630,

Mobile; 0333-2108546

Please also visit our web site www.karachisalestaxbar.org

For the Kind Attention of Dated 21/07/09

Hounourable FTO,

Dr. Shoaib Suddle,

FTO OFFICE,

KARACHI.

FAX MESSAGE

Suggestions with reference to the meeting dated 22/07/09

Dear SIr,

It has been a source of strength for the tax payer, that a strong institution like "Federal Tax Ombudsman" is functioning and providing great relief to the tax payer and addressing the problems and grievances for the last so many years.

However, to further improve the working of this great institution, we feel our prime duty to give suggestions as under:

PROPOSED ADMINISTRATIVE CHANGES:

1.It has been observed by a number of tax advisors that for the past three years in most of the cases the department is providing their Para wise reply to the complaints during the hearing of the case. Therefore there is no time for the complainant to submit any rejoinder in writing or to submit his view points.

This practice adopted by the department requires urgent attention of the honorable FTO. The time limit for the reply should be strictly followed and the writ of the FTO should be maintained

2.Secondly, cases where the reply has been received in time but the copies dispatched by the FTO office through postal services are not reached in time. To overcome this problem, we, therefore, suggest that the concerned department should also use E-mail or a reputed Courier Service.

3.Mostly Assistant Collectors with auditors are now attending the cases and not able to make any on the spot decision, therefore the department should be properly represented by a senior Officer.

4.In most of the cases, it is already established by the superior courts that the demand created by the tax department is not supported by any evidence and just created in very arbitrary manner only to harass the tax payer.

Therefore, it is suggested that once a complaint is made to the FTO the demand should automatically stay till the decision of the FTO.

5.That there are cases, wherein the department has issued show cause notices or Order in Originals wherein the amount of tax based on wrong calculations or without following the accounting principles. Such complaints are also not properly addressed at this forum.

It is therefore suggested that in such cases to assist the FTO or the advisor to discharge his duty under this Ordinance, services of professionals should be obtain on case to case basis to investigate such cases.

6.It has been observed that in case of similar issues Findings/Decisions earlier made by FTO are not being consideredwhile deciding new complaints for which no reason is recoded.

7.Further, there is no library or any other arrangement in Karachi Office from where we can obtain copies of the findings/ decisions passed by various FTO offices and the Honourable President of Pakistan.

PROPOSED CHANGES IN FTO ORDINANCE:

The FTO Ordinance 2000 is not updated and the following amendments are needed.

1.Section 6;

a)Under relevant legislation sub section (iii) in place of central excise act, 1944 words Federal Excise Act, 2005 should be substituted.

b)Under sub section (VIII) the figure 1979 be substituted as 2001.

2..Section 7,

The President has the power to appoint acting Federal Tax Ombudsman, it is suggested that section may be amended and FTO may also be authorized to appoint an acting FTO when the FTO is absent or is unable to perform his functions due to any cause.

This will resolve unnecessary delay in issuance of findings / decisions

3.Section 9 (2b),

Sub section 9 (2b) may be redefined under the ordinance after taking into consideration the term maladministration as defined under section 2(III) of the Ordinance.

4.Section 10(III)

The period of making a complaint should be changed to three years instead of six months.

5.Section 32 of the Ordinance

At present, the revenue division or the complainant aggrieved by the recommendation of FTO can file a representation to the Honorable President.

To save the precious time of the president it is suggested that both should be allowed to make representation to the Honorable President only after aggrieved from the decision of a review application passed under section 14(8).

Khushnood A. Khan

(President)

Karachi Sales Tax Bar Association