RTO-1 Karachi officials directed not to impose penalty without hearing taxpayers

KARACHI: Dr. Muhammad Irshad, Chief Commissioner of Regional Tax Office (RTO-1) Karachi has directed the field formation not to impose penalty without hearing taxpayers.
In a letter circulated to the Commissioners Inland Revenue Zone – I, II, II, IV, Withholding Tax and Broadening of Tax Base, the chief commissioner issued instructions regarding penalty under Section 182 of the Income Tax Ordinance, 2001.
“It has been observed that penalties are being levied without giving an opportunity of being heard to the taxpayer. Penal proceedings are entirely independent of the other provisions of law and therefore, separate proceedings are to be carried out,” the chief commissioner said.
Issuance of show cause notice, to hear the point of view of the taxpayer, is legally binding and not discretionary. “Therefore, levying penalty without reason creates misunderstanding between taxpayers and tax collectors,” according to the official communication.
He directed that no penalty should be levied unless proper opportunity of being heard is provided under Section 182(2) of the Income Tax Ordinance, 2001 to the taxpayer.