KARACHI: Tax Ombudsman Asif Jah while disposing of the complaint of a PTCL Customer has asked PTCL to issue tax deduction certificate and has accordingly, directed FBR to settle the refund claim of the complainant.
In the subject complaint filed before the Federal Tax Ombudsman against non-provision of withholding tax deduction certificate PTCL, Islamabad had raised a preliminary objection that the Hon’ble FTO has no jurisdiction as in cases of maladministration at federally controlled bodies the jurisdiction lies only with the Federal Ombudsman.
PTCL further contended that the Complainant has already availed the forum of the Federal Ombudsman on the same subject matter as that of the instant complaint and the Federal Ombudsman closed the matter in favour of PTCL.
However, FTO has observed that the agency is not justified to question the jurisdiction of the FTO in terms of Section 9(2)(b) of the FTO Ordinance. It was because the Complainant had requested the PTCL to issue tax deduction certificate for the period March 2000 to June 2011 for which he intends to lodge a claim of refund with the FBR. He had availed arbitration of FTO for issuance of refund on account of tax deduction under Section 236(1)(a).
FTO’s findings also stated that The PTCL is bound to facilitate the Complainant/taxpayer by issuing the required deduction certificate being under consumers/ customers facilitation. Moreover tax is deducted by PTCL on behalf of FBR and issuance of tax withholding statements/Certificates is also mandatory for withholding agents under tax laws. The Federal Tax Ombudsman being custodian of taxpayer’s rights cannot sit idle in a situation where on one hand FBR denies the claim of tax deduction filed by the complainant quoting non submission of withholding certificate and on the other hand PTCL is neither issuing the certificate nor denying the complainant’s claim. Sanctity of the Rights of citizens as guaranteed by the Constitution that rules supreme over all other laws and it is too serious an affair to be diluted on technical grounds.
Tax ombudsman has, therefore, directed FBR to ensure that IR field formation (LTO Islamabad) holding jurisdiction over PTCL must resolve the instant issue through coordination with PTCL.while the PTCL authorities are required u/s 23(1) of FTO Ordinance, 2000 to provide assistance, facilitating the issuance of subject tax deduction certificate for the period March 2000 to June 2011against PTCL number 061-6536262 to the Complainant enabling him to lodge his claim of refund with the FBR.