ISLAMABAD, Oct 30: Federal Tax Ombudsman (FTO) Saleem Akhtar has said that the tax liability of a deceased person can be recovered from his legal heir.
However, the FTO made it clear that the tax liability should be to the extent of the estate left by the deceased.
Justice Saleem Akhtar retired ruled that under the provisions of subsection 4 of section 74 of Income Tax Ordinance, it was clear that the liability of a deceased person could be recovered from his legal heir but to the extent to which the estate of the deceased was capable of meeting the liability.
Deciding a case lodged by a complainant, Abdul Jabbar, against income tax department regarding illegal action of tax recovery, the FTO remarked that the question was whether the tax due from late Haji Mohammad Hanif could be recovered from his son, the complainant.
The FTO observed that if Jabbar was assumed to be the legal representative of the deceased, he could be considered as liable only to the extent of the estate left by deceased.