The Federal Tax Ombudsman’s (FTO) timely intervention has resolved a genuine taxpayer’s grievance with a withholding company.
A complainant approached the tax ombudsman regarding the non-issuance of a tax-deduction certificate by the withholding agent. Tax deduction certificates are mostly required from the withholding companies by their clients at the time of submission of income tax returns and tax adjustments.
The tax withheld is deposited with tax authorities by withholding companies while evidence of such tax deductions is provided by such companies to their clients. As a tax collecting agency, the Federal Board of Revenue (FBR) is bound to ensure that taxes are withheld and deposited according to law.
Similarly, under the same tax laws the withholding agents, in compliance with their tax obligations are obligated to maintain certain records like CPRs, file periodical withholding statements, and issue prescribed tax deduction certificates to concerned withholders for submission before tax authorities. FTO, accordingly, took up the matter with the withholding company and resolved the grievance of the taxpayer.
Upon FTO’s intervention, the company issued withholding evidence of tax to the complainant for the period 01-07-2019 to 31-10-2022 without any further delay.
