The Federal Board of Revenue (FBR) has recently issued a substantial directive to financial institutions, requiring them to de-attach the bank accounts associated with the Utility Stores Corporation (USC). This ruling was rendered in response to an injunction order issued by the Islamabad High Court on October 25, 2023.
In accordance with this directive, “all previously attached bank accounts of the subject taxpayer are de-attached with immediate effect,” states the FBR letter to the institutions.
The USC’s bank accounts were seized by the FBR’s Large Taxpayers Unit (LTU) in Islamabad last week on account of Rs 8.19 billion in delinquent sales tax payments. The USC’s bank accounts across the nation were subsequently attached as a result of recovery notices issued by the LTU Islamabad to all pertinent institutions.
The USC lodged a complaint with the Federal Tax Ombudsman regarding the treatment it received from the FBR in response to the LTU’s actions. This action prompted the USC to express concerns. The subject of this complaint was Muhammad Fiaz Hussain, Deputy Commissioner of Inland Revenue, Large Tax Office, Islamabad.
Muhammad Fiaz Hussain was accused of engaging in maladministration and misrepresentation in connection with the Utility Stores Corporation’s ongoing appeal procedure pertaining to the tax period spanning from 2012 to 2016.
This development holds considerable importance as it underscores the intricacies and difficulties that may emerge within the domain of tax collection and administration.
Furthermore, it emphasizes the criticality of complying with legal protocols and judicial directives when managing governmental finances.
De-attachment of the USC bank accounts signifies progress toward a resolution of the matter that initially prompted the attachment. This event exemplifies the importance of maintaining financial transparency, fairness, and legal compliance in all affairs.
Moreover, it showcases the availability of avenues through which individuals and organizations can lodge complaints and express concerns regarding perceived mismanagement or unjust treatment.