LAHORE

Federal Tax Ombudsman Abdul Rauf Ch has directed the FBR chairman to direct the field officers to remove unnecessary and fake NTNs from its record.
Moreover, the Chief Commissioner concerned was also directed to de-register the complainant in accordance with the procedure concerned.
As per details, complainant Malik Abdul Qayum from Jhelum had applied for NTN as he wanted to do his own business and was allotted NTN by the Department. However, later he changed his mind and wanted to do business with his father who had already been allotted NTN and so the complainant filed application for cancelation of his NTN. But despite repeated requests and visits to the concerned office, complainant’s request was not accepted which amounted to maladministration. He claimed that just as there was legal provision in sales tax procedure to de-register a sales tax payer, the FBR itself had introduced TRF-02 Form for de-registration or cancellation of NTN. He contended that the complainant had formally applied to the Department through this Form but the RTO refused to cancel the NTN claiming that the number, once issued, could not be cancelled. The AR contended that such an act was against the procedure and legal right of a person and against the principles of justice, tantamounting to maladministration.
The DR submitted that NTN was issued to the complainant on 21.10.2014 on his own request and later he applied for deregistration which was not provided under the law. He contended that a notice of discontinuance of business was required to be submitted to the concerned officer within 15 days and still the return was required to be filed even if there was no income. Reiterating the written comments of the Chief Commissioner dated 14.10.2015, the DR averred that contrary to deregistration of sales tax registration number, there was no provision in income tax law for deregistration of National Tax Number (NTN).
After hearing both the parties and perusing record, the tax ombudsman wrote the Department’s claim appears contradictory as well as against the principles of justice; FBR itself introduced Form TRF-O2 with a column for removal of NTN like deregistration of Sales Tax registration number. It is not understandable as to why NTN cannot be cancelled or deregistered. There is no provision of law stating that NTN once allotted cannot be removed or cancelled. Refusal to cancel or deregister NTN would mean that even non taxpayer and deceased persons would appear on tax roll to give inflated number of the taxpayers.
The FTO Secretariat directed the Secretary Revenue division Islamabad to implement the recommendations of the Tax Ombudsman and submit the compliance with in prescribed time.