ISLAMABAD: The Federal Board of Revenue’s (FBR) Corporate Tax Office (CTO), Islamabad, has issued a stern warning to tax lawyer Waheed Shahzad Butt, threatening severe legal consequences over what it called “unwarranted” and “baseless” allegations made during proceedings before the Federal Tax Ombudsman (FTO).
In a surprising move, the CTO adopted an aggressive stance in its formal response to the FTO, focusing on the personal conduct of the lawyer rather than directly addressing the core issue of the complaint. The case under review involves the CTO’s alleged adjustment of sales tax demand against income tax refunds, a practice the complainant contends violates a Supreme Court ruling in the Pakistan LNG case and infringes upon constitutional guarantees under Article 10A—specifically, the right to a fair trial and due process.
“The assertion that recovery has been made illegally under section 48 is factually incorrect,” stated the CTO in its written communication. “No coercive recovery has been undertaken. The action in question is a lawful refund adjustment.”
However, the CTO warned that “accusing an officer of the government of Pakistan just in a few fancy lines can result in legal action against the lawyer, which he seems to have forgotten.”
Legal experts and observers have expressed concern over the tone of the response, suggesting it may amount to an attempt to intimidate a legal professional engaged in his duty. Critics argue the CTO’s approach raises broader questions about accountability and professionalism within the FBR’s field formations.
The CTO added that if the lawyer considers the recovery illegal, “the appropriate course of action would be to approach the appellate forum rather than lodging a complaint with the FTO.”
The ongoing case continues to draw attention from legal circles and transparency advocates, who emphasize the need for fair, evidence-based proceedings rather than personal attacks. The FTO has yet to issue its final decision in the matter.
