The Federal Tax Ombudsman (FTO) has given the Federal Board of Revenue (FBR) only three days to dispose of all pending applications from taxpayers seeking extensions for return filing.
An order issued by the FTO on Tuesday revealed that the delay in processing these pending extension applications and the failure to promptly inform taxpayers about the granting of extensions constitute maladministration under section 2(3)(ii) of the FTO Ordinance, 2000.
The FTO directed the FBR to instruct the Member-IR (Operations) to ensure that all relevant commissioners in the field formations dispose of all pending extension applications within three days, providing a reasonable time to taxpayers. The FTO also directed that commissioners must provide a reasonable time to taxpayers who received extension notifications after the expiry of the extended date.
The complaint was lodged against the non-processing of online applications filed for extensions to submit annual income tax returns for the tax year 2025. The complainant stated that several taxpayers, despite timely filing their extension applications through the IRIS portal, have not been granted the requisite permission.
Regrettably, these applications are still lying unattended in the Outbox of the IRIS system.
The complainant further added that this unwarranted delay by the FBR in processing legitimate online applications constitutes not only an administrative lapse but also an infringement upon the fundamental legal rights of taxpayers under the Income Tax Ordinance, 2001.
The system’s failure to respond to applications duly filed within the prescribed time frame is causing unnecessary hardship, creating an impression of procedural injustice, and casting doubt on the fair implementation of tax laws in the country.
A review of the record shows that the complainant approached this forum to seek directions for processing the pending extension applications for the tax year 2025. Although following the intervention of this office, the FBR began disposing of the pending applications, taxpayers were informed of the extension two days after the expiry of the extended date, the FTO order added.
