FTO Probes FBR’s Conduct After Legal Threat to Advocate

Federal Board of Revenue’s (FBR) Corporate Tax Office (CTO) Islamabad has been accused of threatening an advocate representing a taxpayer in FTO Proceedings. Sources said the CTO has issued a veiled warning of legal consequences against advocate Waheed Shahzad Butt, who is representing a taxpayer in a case under investigation by the FTO. According to the case record, instead of focusing on the main issue under probe — the alleged adjustment of sales tax demand against income tax refunds — officials of the CTO turned their attention toward the conduct of the complainant’s lawyer. In a written submission to the FTO, the CTO stated that the lawyer’s allegations were “unwarranted” and reflected a “lack of understanding.” The office claimed that such remarks “undermine the integrity and tireless efforts of the tax institution.” It further cautioned that “irresponsible blame-shifting” without evidence could result in serious consequences for the advocate. The FTO is currently hearing a complaint that challenges the CTO’s actions as potentially contemptuous, citing the Supreme Court’s judgment in the Pakistan LNG case. Legal experts have argued that the move could also violate Article 10-A of the Constitution, which guarantees the right to a fair trial and due process. Observers described the episode as deeply concerning, suggesting that the FBR’s response amounted to an attempt to intimidate a lawyer performing his professional duties. They warned that such conduct raises broader questions about institutional accountability within the tax administration. In its formal response, the CTO defended its actions, asserting that “the assertion that recovery has been made illegally under Section 48 is factually incorrect. No coercive recovery has been undertaken. The action in question is a lawful refund adjustment.” The CTO maintained that “accusing an officer of the Government of Pakistan in a few fancy lines can result in legal action against the lawyer.” It added that if the advocate believed the recovery to be unlawful, “the proper forum for redress is the appellate authority, not a complaint before the FTO.” The statement concluded that “such unwarranted allegations not only show a lack of understanding but also undermine the integrity of the institution. Irresponsible blame-shifting without proof will not overshadow the facts and can lead to serious consequences.”