The Federal Board of Revenue (FBR) has taken action in response to a court order, asking banks to release the attached bank accounts of the Utility Stores Corporation (USC). This decision comes after the FBR’s Large Taxpayers Unit (LTU) in Islamabad attached USC’s accounts due to unpaid sales tax arrears totaling Rs 8.19 billion. Recovery notices were also sent to banks nationwide. In reaction to this, USC filed a complaint with the Federal Tax Ombudsman against the FBR, specifically targeting Muhammad Fiaz Hussain, who is associated with the LTU in Islamabad.
The FBR’s recent move to de-attach the bank accounts follows the court’s directive and signifies a reversal of its previous decision. This decision is expected to bring relief to the USC, which had been facing financial constraints due to the attached accounts. It is a development in an ongoing dispute related to tax arrears for the period 2012 to 2016. The FBR’s decision is seen as a response to the complaint filed by USC and aims to address the issues of mal-administration and misrepresentation during the appeal process.