LTU Karachi starts recovery of Rs30bn

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SOURCEThe News
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LTU KARACHI: The Federal Board of Revenue (FBR) has started tax recovery in cases where stay period granted by appellate tribunals had expired, sources said on Wednesday.

Officials of the Large Taxpayers Unit (LTU) Karachi – the major revenue collection arm of the FBR – said that this drive would result in recovery of around Rs30 billion.

The decision to launch recovery was made after amendment in Income Tax Ordinance, 2001, empowered commissioner of Inland Revenue to start recovery proceedings where stay given by tribunals exceeded 180 days, they informed.

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Through Finance Act, 2018 the amendment made to Section 131 of Income Tax Ordinance, 2001, which said: “Where recovery of tax has been stayed under this section, such stay order shall cease to have effect on expiration of the said period of one hundred and eighty days following the date on which the stay order was made and the commissioner shall proceed to recover the said tax.”

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Prior to the amendment, the tribunals, due to various reasons, allowed stays beyond six months which resulted in stuck up public money, officials said.

Now, after the amendment, the officials said that a commission of Inland Revenue had been empowered to start recovery proceedings in cases where stay period expired even on July 1, 2018.

Appellate Tribunal is the second legal forum for taxpayer as well as for tax department after Commissioner (Appeal) to resolve disputes arising on tax demand.

The sources said that to stay recovery in cases before the appellate tribunals, the taxpayers have option to approach higher courts.

They said that the recovery would be made as per the law, which includes freezing of bank accounts and third party recovery.

(This news/article originally appeared in The Express Tribune on August 16th, 2018)

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