DECEMBER 9, 2022

Federal Tax Ombudsman Orders FBR to Implement Automated System for Jurisdiction Changes

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Federal Tax Ombudsman Orders FBR to Implement Automated System for Jurisdiction Changes

 

Islamabad 19-10-2024: In a recent own-motion investigation, the Federal Tax Ombudsman (FTO), Dr. Asif Mahmood Jah Hon’ble Federal Tax Ombudsman (FTO), has directed the Federal Board of Revenue (FBR) to expedite the implementation of an automated online module to address the inefficiencies and delays in processing jurisdiction change applications submitted by taxpayers.

 

The investigation was initiated by the Federal Tax Ombudsman (FTO) following numerous complaints from taxpayers facing significant hardships in manually applying for a change in jurisdiction from one field office to another. The Federal Tax Ombudsman (FTO) noted that the absence of an online module in FBR’s Iris system forced taxpayers to submit manual applications, resulting in considerable delays in the processing of their requests.

 

According to the investigation, the current process requires taxpayers to manually apply for a change in jurisdiction, after which the Secretary (Jurisdiction), FBR forwards the request to the relevant field office for the issuance of a No Objection Certificate (NOC). However, field offices often take excessive time to issue the NOC, even though the necessary data is already available in the Iris system.

 

In its findings, the Federal Tax Ombudsman (FTO) concluded that these delays amounted to maladministration, as defined under Section 2(3)(ii) of the Federal Tax Ombudsman (FTO) Ordinance, 2000. The maladministration was attributed to inattention, inefficiency, and ineptitude within FBR’s handling of jurisdiction change applications, causing unnecessary hardships for taxpayers.

 

The Federal Tax Ombudsman (FTO) also observed that many of these manual applications were often misplaced and not easily traceable, further exacerbating the delays. This situation, according to the Federal Tax Ombudsman (FTO), fell squarely within the definition of maladministration and required urgent remedial action.

 

During the course of the investigation, representatives from FBR’s IT Wing acknowledged the problem and confirmed that a Change Request Form (CRF) had been developed and tested. The Federal Tax Ombudsman (FTO) was informed that the User Acceptance Test (UAT) for the new online module was completed in September 2024, and final approval from the relevant domain team was pending. The FBR assured the Federal Tax Ombudsman (FTO) that the module would be available for taxpayers soon.

 

Despite these assurances, the Federal Tax Ombudsman (FTO) expressed concern that no permanent solution had been implemented to streamline the jurisdiction change process, even though the issue had been the subject of more than 100 previous complaints, with decisions upheld by the President of Pakistan.

 

In its final recommendations, the Federal Tax Ombudsman (FTO) directed FBR to:

  1. Implement the proposed online module for processing jurisdiction change applications within 45 days.
  2. Report compliance to the Federal Tax Ombudsman (FTO) within 60 days.

 

This judgment emphasizes the need for technological improvements and more efficient processes in Pakistan’s tax administration. The Federal Tax Ombudsman (FTO) recommendations, if implemented, are expected to significantly reduce the delays and administrative burdens that have plagued taxpayers seeking jurisdiction changes within FBR. The Federal Tax Ombudsman (FTO’s) order serves as a reminder of the government’s commitment to providing fair and efficient tax administration to its citizens.

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