PTBA urges FBR to streamline jurisdiction issue in tax cases

KARACHI: The Pakistan Tax Bar Association (PTBA), a group of tax lawyers and consultants, has asked the Federal Board of Revenue (FBR) to streamline the process of transferring tax cases to their correct jurisdictions, saying it would save time and money for both the taxpayers and the exchequer.

In a letter to the FBR chairman, the PTBA said that jurisdiction was the basis of due process of law, as guaranteed by the Constitution of Pakistan, and any proceeding initiated without proper jurisdiction would be null and void, as per the judgments of the superior courts.

"Process cannot be initiated without proper assignment of jurisdiction. It is also held in a number of judgments by the superior courts that any proceeding initiated without jurisdiction will end up as a futile exercise and should be null and void," the tax bar said.

The PTBA claimed that the field officers of the FBR often ignored the issue of jurisdiction and proceeded with the assessment of taxpayers without explaining or satisfying their fundamental right to be assessed in the correct jurisdiction.

"...the field officer failed to pay any heed to the contention if raised about jurisdiction and they always want to proceed without satisfying and explaining this very fundamental right of the taxpayer that the taxpayer has to be assessed in a correct and proper jurisdiction."

The PTBA appreciated the efforts of the FBR in re-transferring the cases of builders and contractors, which were previously allocated to Karachi, Lahore and Islamabad offices, to their respective jurisdictions. However, the PTBA said that there were still some cases pending for transfer and the process was very slow and time consuming.

"Still there are a few cases which are in the pipeline of being transferred and they are being taken care of by the FBR team. However, we would like to reiterate that due to unknown reasons this process of transfer is very slow and time consuming."

The PTBA suggested that the FBR should develop a Jurisdiction Tab in its IRIS web portal, where the taxpayers could file their transfer applications online with complete details and reasons.

It said that the approval of the transfer applications should be given by the chief commissioners of both the existing and correct jurisdictions within 15 days, and in case of delay, the applications should be automatically forwarded to the Member Operations of the FBR, who would decide the matter within another 15 days.

"The approval of the same should be given by the Chief Commissioners of both the existing and correct jurisdiction within 15 days of the filling of application and the transfer should be made accordingly," the PTBA said.

Otherwise, upon lapse of 15 days’ time, the said application should automatically be transferred to the Member, Operations (Ops) FBR with intimation to the taxpayer and Member Ops will decide the fate or transfer the case within further 15 days. This entire exercise will give ease to the taxpayer and he will be aware of his status throughout the process and progress of the application..

The PTBA said that this would provide ease to the taxpayers and keep them informed of the status and progress of their applications.

It also said that this would prevent the loss to the exchequer, as the courts had always taken a serious view on the jurisdictional point, and also give relief to the taxpayers, which was the FBR's core responsibility.

The PTBA requested the FBR chairman to take necessary action and issue directions to develop the Jurisdiction Tab in the IRIS web portal as soon as possible.

Therefore, in view of FBR efforts of pro-actively transitioning to automation, we recommend that the Jurisdiction Tab in IRIS portal for transfer of jurisdiction be developed so that the taxpayer can file the transfer application online with complete details and reason.

... without jurisdiction exercise initiated by the taxation officer will create a loss to the exchequer because the courts have always taken very serious view on jurisdictional point and at the same time it will also give relief to the taxpayers, which is FBR’s core responsibility."