Lack Of Service Of Tax Notices

Lack Of Service Of Tax Notices

Pakistan Tax Bar Association has drawn the Federal Board of Revenue’s attention towards a deficiency in the law for ensuring proper service of notices and other documents to resident taxpayers.

The Tax Bar strongly feels that since there are no proper methods to serve notices, which is not only causing revenue loss, but is also unjust when ex parte orders are passed by the department against a registered individual.

The Tax Bar maintained that such decisions made by the department are illegal and not sustainable in the eyes of the law because as per current practice only notices and other documents served to the resident taxpayers in accordance with the mode and manner prescribed under Section 218(1) of the Income Tax Ordinance 2001 would be valid and legal.

In order to remove the lacuna in the law, the Tax Bar has urged the Board to clarify with regard to proper service of notices and other documents on resident taxpayers under the Income Tax Ordi­nance 2001 and Income Tax Rules, (read with) General Clauses Act 1897.

In support of their argument, the Tax Bar further pointed out that under Section 218 of Income Tax Ordinance 2001, service of notices and other documents would be on the basis of personally serviced or through a representative.