FBR Flags CTO Response in Tax Complaint

The Federal Board of Revenue (FBR) has expressed concern regarding the handling of a complaint filed by a foreign petroleum company before the Corporate Tax Office Islamabad, and has directed the submission of a comprehensive response before the Federal Tax Ombudsman (FTO).

In an official communication, the Inland Revenue Wing of the FBR observed that the response previously submitted by CTO Islamabad was inadequate and did not meet the required procedural standards. The conduct was deemed inconsistent with the expectations of proper case management in quasi-judicial proceedings.

The FBR has instructed the Chief Commissioner Inland Revenue to provide detailed, para-wise comments addressing each allegation raised in the complaint, rather than submitting brief or generalized responses.

The directive also references an earlier order issued by the Federal Tax Ombudsman on November 11, 2025, which had similarly highlighted deficiencies in the response submitted by the tax authorities and escalated the matter to the Member (IR-Operations) within the FBR.

It has been noted that CTO Islamabad had initially furnished a one-line reply, prompting renewed instructions from the FBR to ensure that all observations and issues raised in the complaint are addressed comprehensively.

The FBR has reiterated the importance of detailed and structured responses to ensure effective adjudication before the ombudsman and to uphold procedural integrity.

Legal practitioners have observed that while the directive reinforces stricter compliance standards, it also underscores the need for consistency in the application of such procedural requirements across regulatory bodies.