KARACHI: Karachi Tax Bar Association (KTBA) has protested the estimation of advance tax liability by tax officers and notices for such recovery.
Syed Rehan Hasan Jafri, President KTBA in a letter addressed to Chairman F.B.R Asim Ahmad complained that a number of notices have been received by tax payers wherein Income Tax department has worked out the tax liability (advance tax) after it was assessed by the tax payer.
He said that legislature has bestowed self-estimation upon tax payer and a tax officer cannot exercise this right. He also referred to a judgment passed by Lahore High Court which overturned the estimate made by a tax officer observing that only a tax payer can estimate his liability of advance tax.
The President KTBA also referred to a judgment by High Court of Sindh wherein it was held that Income Tax Officers have no powers to challenge the correctness of the estimates filed by a tax payer.
The letter also refers to a judgment by Islamabad High Court which said that department can take action once return of income tax is filed and it is established that the advance tax was under paid.
He said that amendments in Finance Bill, tax officers are not empowered to question self estimation if actual amount due is paid.
He requested the Chairman F.B.R to issue directions to the field formations to cease the futile exercise of issuing notices and attempts for undue recovery.