FBR Gives Legal Cover to Electronically Served Notices

The Federal Board of Revenue (FBR) has given legal cover to electronically-served notices in cases where the person has provided an electronic address. The FBR on Friday issued an SRO547(I)/2022 to amend Income Tax Rules, 2002.

According to the FBR’s new amendment, where a person has provided an electronic address, the document required to be served on the person shall be considered sufficiently served if sent to that address”, it added.

A tax expert informed that the FBR has obtained legal backing for the notices served through the IRS electronic system. The proper service of the order by the tax department is as important as other provisions of the Income Tax Ordinance, 2001.

The process of serving an order directly affects the taxpayer’s right i.e. Right to Appeal against a reference order before Appellate Authority. This Service of Order is addressed by section 218 of the Ordinance, however, for companies, is elaborated in Section 218(2).

Under section 218 (Service of notices and other documents), any notice, order or requisition required to be served on a resident individual (other than in a representative capacity) for the purposes of this Ordinance shall be treated as properly served on the individual if (a) personally served on the individual or, in the case of an individual under a legal disability or a non-resident individual, the representative of the individual; (b) sent by registered post or courier service to the place specified in clause (b) [of sub-section (2)] or to the individual’s usual or last known address in Pakistan; or (c) served on the individual in the manner prescribed for service of a summons under the Code of Civil Procedure, 1908 or (d) served on the individual electronically in the prescribed manner.