livelawpk.com - FTO directed FBR to enhance Data Security Protocols

Federal Tax Ombudsman directed FBR to take appropriate measures to enhance Data Security Protocols across all Jurisdictions to prevent Future Breaches --- FTO

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Federal Tax Ombudsman directed FBR to take appropriate measures to enhance Data Security Protocols across all Jurisdictions to prevent Future Breaches --- FTO

The Federal Tax Ombudsman (FTO) recently addressed a complaint filed under Section 10(1) of the Federal Tax Ombudsman Ordinance 2000. The complaint pertained to the alleged illegal registration of a tax filer's account in the name of an Overseas Pakistani residing in the United States. The complaint was referred for comments to various entities, including the Revenue Division, Member (Information & Technology), and Regional Tax Office (RTO) Lahore. Comments were duly received, and a hearing was conducted with relevant departmental representatives.

The complainant, an Overseas Pakistani, asserted that an Individual Taxpayer Identification Number (NTN) was illicitly registered in her name without her consent. Despite her efforts to rectify the issue, including informing the Federal Board of Revenue (FBR) about the unauthorized registration, the situation persisted. Subsequently, attempts were made to manipulate her tax profile and file fake income tax returns in her name, jeopardizing her legal standing.

An investigation revealed a series of unauthorized changes to the complainant's tax profile, orchestrated by individuals within the RTO Lahore. Notably, employees were identified as responsible for the manipulation of data and unauthorized access to the complainant's account. Despite confrontations and inquiries, some implicated individuals failed to provide satisfactory explanations or comply with investigative procedures.

The FTO has recommended stringent disciplinary actions against all involved parties, including delisting the delinquent Individual Tax Practitioner (ITP) and initiating investigations into the compromise of tax data integrity. Additionally, measures are proposed to enhance data security protocols and oversight of IT personnel across all jurisdictions to prevent future breaches. Compliance with these recommendations is expected within 45 days.

This case highlights significant lapses in data security and breaches of trust within the tax administration system. The FTO's recommendations underscore the need for swift and decisive action to address these issues and restore public confidence in the integrity of tax-related processes.