Daily Times

The Federal Tax Ombudsman (FTO) has recommended to restrict powers of tax officials in recovery of outstanding accounts through freezing the bank account of taxpayers. The FTO in its proposals for the next budget 2021-22 said that coercive recoveries through attachment of bank accounts without notice and subsequent delay in restoring the account, hits the taxpayers very hard. It was recommended that notices should be issued with bar code and time limit may be prescribed for ensuring the de-sealing of bank accounts of taxpayers/assesses after resolution of issue. The FTO in the budget proposals has suggested to restrict the use of power to attach bank accounts unless the case under litigation has been established at least in the first appellate stage. It proposed adherence to service of bar-coded notices to eliminate possibility of abrupt attachment of bank accounts for recoveries and hasty ex parte decisions. The FTO suggested that the shortest time limit may be prescribed in the statute to ensure de-sealing of bank accounts of taxpayers/assesses.