FBR’s Electronically Issued Notices are Legally Enforceable Now

The Federal Board of Revenue (FBR) has decided to give legal cover to electronically-served notices in cases where the person has provided an electronic address.

The FBR has issued an SRO549(I)/2022 to issue a draft amendment to the Income Tax Rules, 2002.

According to the FBR’s proposed amendment, “Where a person has provided an electronic address, the document required to be served on the person shall be considered sufficiently served if sent to that address”, it added.

A tax expert said that the FBR has made an attempt to obtain legal backing to the notices served through the IRS electronic system. But notices have to be served to one of the partners of the AOPs or directors of the companies on the declared addresses. The notices would be served electronically to the partners of the AOPs or directors of the companies to legally cover the notices served through IRS system.

Currently, the officer issues online orders and upload on IRIS portal and without uploading the notices/orders in accordance with Section 218 of Ordinance. Since the order is not served in accordance with law, after lapse of few months on checking portal the case has been barred by time limitation for filing of appeal.

On approaching the relevant field formation, the taxpayer is forced to pay Rs200/300 for certified true copy and then go for appeal which definitely would face at the first instance condonation of time issue before Appellate Authorities.

The most affected sector is corporate sector (AOPs and companies), the law considers a valid service, when the order/notice is served to principal officer of association of person or company, however uploading to IRIS portal is considered to be sufficient negating true essence of law and depraving the right to appeals, he added.

Courtesy: Business Recorder

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