According to FTO, taxpayers should pay taxes where businesses are located.

According to the Federal Tax Ombudsman (FTO), taxpayers should be subject to taxation in the country in which their businesses are situated.

The FBR’s decision to transfer cases on behalf of a group of people is legal and falls under the authority granted by the Income Tax Ordinance of 2001. However, it is also obvious that the taxpayer has suffered greatly as a result of the case being moved from Quetta to Karachi, and the FTO order further stated that the taxpayer has a genuine right to be taxed in the jurisdiction by providing him with assistance at the doorstep where the business is located and is being conducted.

The Federal Board of Revenue shifted the jurisdiction over the taxpayers as a class of people who are engaged in the Builders/Developers business from RTO, Quetta to Medium Tax Payers Office (MTO), Karachi by its notification. The taxpayers are builders/developers.

According to the ruling, another matter that requires FBR’s consideration is whether contractors working in public sector building can be grouped with private sector builders and developers. In any situation, discrimination against any person or group of people is undesirable.

The claim that certain cases similar to these have allegedly been returned to RTO Quetta also calls for an investigation by the relevant authorities at FBR HQs.

Several related cases involving KP and Balochistan are currently pending at higher judicial levels. The only way to deal with this problem is to treat all identical cases the same way.

The FTO has instructed the FBR to discipline the concerned RTO, Quetta, and MTO, Karachi officers for failing to show up for the hearing. The order stated that FBR must have a realistic perspective in this issue.

The FTO has requested that the FBR instruct the IR Policy Wing to determine the question of jurisdiction in accordance with other comparable cases and in light of orders from the superior judiciary and to review the specific facts of the current case in order to reach a decision that is both legal and equitable.

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