Islamabad High Court directs FBR to address IRIS issues

The Islamabad High Court (IHC) has directed the Chairman of the Federal Board of Revenue (FBR) to resolve issues within its electronic system, known as 'IRIS.' This decision follows a legal petition that raised concerns about how tax authorities handle taxpayer information. The petition, filed by a lawyer from Lahore on behalf of a taxpayer seeking income tax refunds, also urged the enforcement of an order from the Appellate Tribunal Inland Revenue (ATIR) in Islamabad.

The case centered on allegations that FBR employees improperly changed the taxpayer's Active Taxpayer List (ATL) status without valid reasons. An investigation by the Federal Tax Ombudsman (FTO) revealed that the taxpayer's status was incorrectly marked as 'Inactive' without proper notifications being issued. The FTO discovered that a crucial notice was not electronically delivered to the taxpayer's folder, with the FBR attributing this failure to IT system issues.

The IHC's ruling recognized the petitioner's call for an FTO investigation into the actions of the tax authorities. The court stressed the urgency for the FBR to promptly rectify the identified flaws in its electronic system. These flaws not only impact the accuracy of taxpayer information but also undermine trust in the tax administration process.

The court's directive emphasizes the critical role of maintaining the proper functioning of the IRIS system to uphold taxpayer trust and ensure fair treatment. This decision establishes a precedent for holding tax authorities accountable for their conduct and the reliability of their electronic systems. The IHC specified that the FBR should take measures to address the system glitches and flaws outlined in the FTO's report.

Ensuring the integrity of the IRIS system is essential for preserving taxpayer confidence and upholding procedural fairness. This ruling underscores the importance of providing adequate notice and ensuring transparency in administrative procedures. The court's order demonstrates a commitment to accountability and underscores the necessity for tax authorities to promptly address deficiencies in their systems.