Islamabad (Business Desk) — The Federal Board of Revenue (FBR) has defended its recovery of Rs30 million from a Pakistani citizen’s bank account, stating the action was carried out in accordance with the Income Tax Ordinance, 2001, after the taxpayer failed to clear outstanding dues.
According to FBR, the individual declared himself a resident in income tax returns for tax years 2017 and 2018 while claiming exempt foreign income exceeding the applicable limit. The authority said repeated notices were issued under Section 122(9), but no supporting evidence was provided.
After amending the tax assessment and raising a demand of Rs30 million, FBR initiated recovery proceedings under Sections 137, 138, and 140 of the Income Tax Ordinance, allowing direct recovery through a taxpayer’s bank account when legal requirements are fulfilled.
FBR also alleged that the taxpayer attempted to halt the recovery by submitting forged appellate orders to his bank through WhatsApp. The authority said the documents were not issued by the department, lacked official verification, and did not exist in its Inland Revenue System.
Tax expert Amer Sharif said the law permits direct recovery from bank accounts only after assessment, demand notices, and recovery procedures have been completed. FBR maintains these legal requirements were met before the recovery was executed.
