SC declares taxpayers’ arrests by FBR ‘illegal’

The Supreme Court (SC) on Wednesday declared the registration of FIRs and arrests of taxpayers by the Federal Board of Revenue (FBR) without determining the sales tax dues ‘illegal’, reported 24NewsHD TV channel.  

SC judges Justice Shahid Waheed, Justice Irfan Saadat and Justice Aqeel Abbasi ruled that the role of the Directorate of Intelligence and Investigation Inland Revenue was limited to the collection of data only. “It does not have the power to prosecute,” the judges said, and added that from now on, the Directorate of Intelligence and Investigation’s power to take criminal action against a taxpayer was declared ‘ineffective’. “The decisions given by all concerned high courts are upheld and the appeals are rejected.”

Similarly, the verdict read, all FIRs, arrests and trials conducted so far were also declared null and void.

The apex court ordered that all criminal proceedings currently underway must immediately be stopped.

It said that determining the amount to be paid by a taxpayer and giving him the right to appeal before taking action against him was a constitutional requirement. “Giving the FBR the power to take criminal action against a taxpayer is not only illegal but is also against the constitution. The initiation of a criminal action against a taxpayer in the initial stages is contrary to the requirements of justice,” read the verdict. 

The court also declared the registration of FIRs against the taxpayers on mere allegations of tax evasion to be an overstep on the part of the FBR.

Reporter: Amanat Gishkori