KARACHI, Feb 12: The Income Tax Bar Association, Karachi (ITBAK) has demanded setting up of another special bench at Sindh High Court (SHC) for hearing tax and corporate cases and assist in reducing pendency.
This demand was raised by the President ITBAK Abdul Jabbar Kazi at the bar’s annual dinner held on Monday. The chief justice of SHC Mr Justice Saiyed Saeed Ashhad was the chief guest.
While lauding the smooth functioning of the existing bench in disposing of income tax cases, the ITBAK chief requested for the constitution of another special bench to hear taxes and corporate law matters so that pendency of cases were reasonably reduced.
Kazi also urged upon the Central Board of Revenue (CBR) to call suggestion before finalizing and incorporating amendments in the income tax ordinance.
He said the CBR calls suggestions from the tax bars for making amendments in the ordinance but after receiving the recommendations the board never informs or takes into confidence these professional bodies about the amendments or suggestions going to be incorporated in the income tax ordinance.
The president ITBAK suggested that before making any amendments the CBR should call suggestion about the proposed changes and give sufficient time to taxpayers to think over the proposed amendments.
He informed the participants that more than 150 amendments are being proposed in the next Finance Ordinance, therefore, the CBR should let the proposed amendments be known by March 1, 2002 so that they are properly discussed and debated.
Referring to the proposals about restructuring of the CBR, he demanded that the board should be autonomous as the present link with the ministry of finance is no more workable.
Since the board is presently functioning under the direct supervision of the finance minister, he said it was constrained by the budgetary needs of the ministry, which fixes annual revenue targets.
As a result of this set-up, he said, the CBR agrees to a target which may be wholly unrealistic in the context of the economy’s revenue yielding potential or which may be arbitrarily fixed by the finance ministry.
He said that there is a general complaint in respect of long delay in refunds, proper credit of tax deductions, providing appeal effects and rectifications, which result in denial to justice to taxpayers.
Kazi suggested that strict disciplinary action should be taken by not merely issuance of departmental instructions but complete follow-up should also be carried out for such cases.
He also stressed upon a dire need of training tax officials so that assessments are made on merit.
The largely attended dinner saw dignitaries from all walks of life particularly judiciary and tax experts as well as high officials from the income tax department.