ISLAMABAD: Two state-owned bodies have openly come face to face over tax matters, with Utility Stores Corporation (USC) filing a complaint against the Federal Board of Revenue (FBR) and accusing it of harassment and misinterpretation of laws.

The USC not only filed a formal complaint against Muhammad Fiaz Hussain, a high-ranking FBR official, but also released a statement to the media.

In the complaint to the Federal Tax Ombudsman, the USC accused the tax official of “maladministration” and misrepresentation during another ongoing dispute. The USC said it had filed an appeal with the Appellate Tribunal Inland Revenue concerning the tax period from 2012 to 2016.

The issue went to the ATIR after the FBR disputed USC’s claim of tax paid on the purchase of inventory during the four-year period. The USC claimed it had declared Rs5.04 billion tax paid against the purchases in its sales tax returns. Yet, the FBR created a duplicate claim without proper verification.

Published in Dawn, October 21st, 2023