The Federal Board of Revenue defended its bank recovery action, saying it recovered Rs30 million from a citizen’s account in a disputed tax case.
The tax authority alleged the citizen tried to stop the recovery by submitting forged FBR appellate orders to his bank. FBR said the documents were never issued by the department.
FBR said the citizen had declared himself a resident individual in income tax returns for tax years 2017 and 2018. The authority said he declared Rs. 23.52 million in foreign income as exempt in each of the two tax years.
FBR said the declared exempt foreign income exceeded the applicable Rs. 5 million exemption limit. The authority said it issued notices under Section 122(9) of the Income Tax Ordinance, 2001.
FBR said it gave the citizen several opportunities to provide documentary evidence, but the citizen did not submit any supporting material. The board later amended the assessment and raised a tax demand of Rs30 million.
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Tax expert Amer Sharif told ProPakistani that FBR can recover unpaid dues directly from a bank account only after completing legal steps under the Income Tax Ordinance.
He said Section 137 sets when assessed tax becomes payable. He said Section 138 allows FBR to issue a formal demand and recovery notice if the tax remains unpaid.
Sharif said Section 140 allows FBR to direct a bank to transfer money from a taxpayer’s account to the government.
He said the power does not stand alone and follows the assessment and recovery-notice process. FBR said the alleged forged orders lacked official barcodes and were not registered in the Inland Revenue System.
The citizen filed an appeal with the Commissioner of Inland Revenue Appeals on June 24, 2026. Sharif said Section 111 deals with unexplained income or assets, but FBR’s official statement did not say it used that section in this case.
The FBR bank recovery case has raised public attention over tax enforcement powers and taxpayer documentation requirements.
