FBR to review 103 tax credit cases

The Federal Board of Revenue (FBR) has been directed by the Federal Tax Ombudsman (FTO) to re-examine 103 tax credit cases from 2014 to 2021 under Section 65D of the Income Tax Ordinance 2001 and has been ordered to process the pending 281 tax credit claims.

FTO found after an investigation that undue tax credit was provided to companies without any standard operating procedures (SOPs) for credit allowance.

FTO noticed that the income tax department had not carried out any proper verification process.

FBR has been given a checklist by FTO to review the cases under the provisions of Section 65D.

After observing that the tax credit available under Section 65D was being misused, FTO has ordered FBR to create a built-in monitoring mechanism for ensuring strict compliance with Section 65D (4) of the ordinance.