Pakistan, June 3 -- The Federal Tax Ombudsman (FTO) has held that obtaining tax deposits from taxpayers during proceedings under Section 175C of the Income Tax Ordinance, 2001, without subsequently determining liability through the prescribed legal process, constitutes maladministration and violates the principles of due process and fair administration.

The FTO directed the Federal Board of Revenue (FBR) to submit a compliance report within 45 days, a news release said on Tuesday. The FTO ruling was issued in response to a complaint filed by the owner of Noor Surgical Hospital, Abbottabad, alleging that Inland Revenue officials had visited the hospital and initiated proceedings under Section 175C of the Income Tax Ordinance, 2001.

The c...