LAHORE: The Federal Tax Ombudsman (FTO), Dr. Asif Mahmood Jah, has sought clarification from the Federal Board of Revenue (FBR) on the legal status of withholding tax on court and special court allowances eligible for law enforcement officers. district court.

The clarification was sought against a complaint filed by an additional session judge following the judgments of the two high courts, followed by the granting of the exemption of judicial and special judicial allowances from the deduction of income tax paid to the district judicial officers by the letters of the FBR dated 29.03.2021.

However, this exemption was withdrawn by FBR on 28.05.2021 subject to a pending appeal before the Supreme Court. According to the plaintiff, in accordance with a recent Supreme Court instruction, the FBR letters withdrawing the exemption were no longer in scope, therefore, the letter authorizing the exemption should be implemented. He filed an application with the Chief Commissioner-IR, RTO requesting reimbursement of the tax from 2016 to 2020 in the amount of Rs900,634. But the ministry has not refunded the amount despite repeated requests.

The FTO observed that the FBR withdrew the exemption in light of the Supreme Court’s brief order suspending the order of the two high courts. In the meantime, the tax ombudsman ordered the FBR to treat the complaint in question as a representation on behalf of the complainant and to provide the necessary clarifications within 30 days after considering all the legal aspects of the case. The OTF further directed the relevant Commissioner to rule on the Complainant’s refund request in light of the above-noted FBR clarification after providing the Complainant with an adequate opportunity for a hearing.

Copyright Business Recorder, 2022