Thursday, 23 March 2023

KTBA requested the FBR to withdraw clarification regarding mode of furnishing of tax notices

The Karachi Tax Bar Association (KTBA) has requested the Federal Board of Revenue (FBR) to withdraw the clarification regarding the matter of services / furnishing of tax notices and other documents under Section 218 of the Income Tax Ordinance 2001.

In a letter to the Chairman of FBR, Karachi Tax Bar Association (KTBA) on February 22, 2018 expressed grave concern over the withdrawal of the FBR’s earlier explanation and limited the entire procedure of serving notices and other documents to one mode only i.e., via electronic servicing of tax notices.

According to KTBA the board had completely ignored the concept of “personalized service” procedures for resident individual taxpayers and for other taxpayers. As provided in clause (a) of sub-section (1) of section 218 and clause (a) sub-section (2) of section 218 of the Ordinance respectively and by putting all its weight on only one clause i.e. clause (d) of both the said sub-sections providing for electronically mode of service and also completely ignoring the presence of clauses (b) of both the said sub-sections of section 218 appearing in the Ordinance.

Earlier Explanation of FBR regarding servicing of notices

KTBA further said that the earlier explanation issued by the FBR on February 22, 2018 was a material for a thorough reading of the law and it was very much in accordance with the law. FBR issued the new explanation, after a gap of almost three years, was the result of a misreading of the law on 03 February 2021.

Servicing of notices by both electronically and personally

Adding that law describes that notices, or orders issued to taxpayers, should be served, In two ways – it should be presented to the taxpayers personally. Further, it should be sent either by registered post / courier or summons service or electronically as prescribed.

Therefore, KTBA has requested the FBR to withdraw the new and stringent clarification issued on 03 February 2021 and to provide maximum level of facilities to the taxpayers by restoring the explanation of prior to 22 February 2018.

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Tax Notices | FBR | Federal Board of Revenue | Mode of Tax Notices | KTBA | Karachi Tax Bar Association | Income Tax Ordinance, 2001 |

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