Tax collection is a backbone of every country and tax collection is very important to run a country. Transparency in tax collection and tax related matters is crucial to increase the confidence of taxpayers to pay their taxes as their moral obligation. If you find yourself trapped in tax related issues or a feel that tax authorities have done injustice to you then Federal Tax Ombudsman is here to help you with your grievances. In this article we will discuss what is Federal Tax Ombudsman and how does they can help you.
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What is Federal Tax Ombudsman?
In 1983 Wafaqi Mohtasib also known as Ombudsman Secretariat was established to check any misadministration in the departments of federal government. Later on, in 2000, Federal Tax Ombudsman was established to look after the issues taxpayer’s have with tax authorities. Since its establishment FTO has provided relief to thousands of taxpayers in Pakistan, FTO also played an important role in protecting the taxpayer’s rights and to address the mismanagement in taxation system.
Tax advisors and tax consultants assist FTO in all tax related matters such as income tax, sales tax, customs and federal excise. FTO plays an important role in improving the governance in Federal Board of Revenue.
FTO has it headquarter located in Islamabad and seven other regional offices located in different cities of Pakistan.
| Federal Tax | Rawalpindi Division |
| Federal Tax | Khyber Pakhtunkhwa |
| Federal Tax | Gilgit Baltistan |
| Federal Tax | FATA |
| Sindh Province | Karachi Regional Office |
| Baluchistan Province | Quetta Regional Office |
| Punjab Province | Lahore Regional Office |
Function of Federal Tax Ombudsman
- The primary objective of FTO is to dispose of the registered complaints of tax mismanagement timely, efficiently and independently.
- FTO also provide justice to wronged taxpayers by the actions of FBR.
- The Ombudsman is required to dispose of the complaints not more than 45 days.
- FTO also provides the recommendations to FBR as per the suggestions of Advisory Committees.
- Regular visits of the reported mismanaged offices.
- Specialized research investigations.
- Act on the references from President of Pakistan.
Difference between Federal Tax Ombudsman (FTO) and Federal Board of Revenue (FBR)
Federal board of Revenue is responsible for tax collection and enforcement while Federal Tax Ombudsman is focuses on the dispute resolution between taxpayers and tax authorities such as FBR, SRB, PRA and KPRA. FTO do not have the power to collect the taxes or enforce laws. FTO only provide the recommendations to resolve the issues.
FTO Complaint Management System
To provide the free of cost, speedy justice, achieve paperless environment and to reduce the time of complaint filling process, FTO has established an online complaint filling system. if you want to register a complaint on FTO online portal click here.
Taxpayer can lodge the complaint in person, online via email, via website of FTO or via smart phone application of FTO. After the registration of complaint, with the help of Complaint Management Information System (CMIS) that complaint is assigned to FTO Advisors for further action.
To address the grievances of taxpayer and rectify the mismanagement, FTO hears complainant and FBR and submit the recommendations for further actions. These recommendations are monitored to ensure the compliance and legal actions are taken by FTO in case of non-compliance with in stipulated time frame. During this whole process of the case, FTO keeps the complainant informed.
Limitations of Complaint Management System
In following scenarios FTO can not provide the any support to complainant
- Issues that pending before a competent court, tribunal, board, or authority.
- Issues related to income or wealth assessments, tax or duty liability determinations, goods classification or valuation, and the interpretation of laws, rules, and regulations concerning these assessments, determinations, classifications, or valuations, for which legal remedies such as appeal, review, or revision are available under the relevant laws.
Benefits of the Federal Tax Ombudsman
Taxpayers Rights Protection
FTO ensures that taxpayers rights are protected. FTO also ensure that taxpayers are treated fairly and their grievancess are taken seriously.
Conciliation between Taxpayer and Tax Authorities
By acting as mediator, FTO helps in resolving the dispute amicably. This helps to maintain positive relationship between taxpayer and tax authorities.
Transparency
FTO promotes the transparency in tax system of Pakistan. By addressing the disputes and recommending the improvements, FTO help to create a more transparent tax system.
Common Issues Handled by FTO
Following are the most common issues resolved by Federal Tax Ombudsman
Delay in Tax Refunds
One of the most common issue is delay in tax refunds, FTO helps to expedite these delays and ensure that taxpayers receive their refunds promptly.
Audit Disputes
Another common issue is dispute arising from tax audits. Federal Tax Ombudsman acts as mediatory between taxpayer and tax authority to resolve tax audit dispute fairly.
FAQs
The primary objective of Federal Tax Ombudsman is to dispose of the complaints registered against the tax authorities by the taxpayers. FTO hears the complainant and tax authority and provides the recommendations for dispute resolution.
There are five Federal Ombudsmen are currently working in Pakistan.
1. Wafaqi Mohtasib
2. Federal Tax Ombudsman
3. Federal Ombudsperson for Women
4. Federal Insurance Ombudsman
5. Banking Mohtasib
In 1983, first ombudsman office, Wafaqi Mohtasib also known as Ombudsman Secretariat was established accordingly to the requirement of the constitution of Pakistan to check any misadministration in the federal departments of Pakistan.
Federal Tax Ombudsman are required to dispose of all complaints within 60 days of mandatory period.
Conclusion
The Federal Tax Ombudsman is an important resource for taxpayers to protect their rights by providing the efficient means of resolving the tax related matters. FTO plays a crucial role in prompting transparency and fairness in the tax system of Pakistan.