ISLAMABAD: President Asif Ali Zardari has upheld the order of the Federal Tax Ombudsman that the Federal Board of Revenue’s (FBR) field officials should exercise due caution in future to ensure that the confidentiality of taxpayers’ tax related information and personal data is ensured during utilization for official purposes.
The President has dismissed the Federal Board of Revenue’s (FBR) representations challenging a Federal Tax Ombudsman (FTO) order concerning disclosure of taxpayers’ confidential information.
The case involved six identical complaints filed by Dr Usman Iqbal Aujla and others against alleged unauthorized sharing of classified tax information in the assessment orders of other family-member taxpayers. The complainants had alleged that details relating to wealth statements, income and capital gains were reproduced in the assessment orders of other taxpayers.
The complainants maintained that reproduction of one taxpayer’s confidential financial information in another taxpayer’s assessment order constituted unauthorized disclosure in violation of Section 216 of the Income Tax Ordinance, 2001.
They argued that although tax officers could examine related-party information for assessment purposes, such information could not be reproduced in another taxpayer’s assessment order in a manner accessible to that taxpayer.
The FBR, however, contended that the information was already available on official records through taxpayers’ returns, wealth statements and statutory declarations.
It argued that Section 216(3)(a) permitted disclosure to persons acting in execution of the Income Tax Ordinance where necessary for its purposes. The department also maintained that examination of related-party transactions and wealth patterns was necessary during assessment proceedings.
The FTO observed that disclosure of personal information, including wealth statements, income-tax returns and financial transactions, to unauthorised persons was prohibited under Section 216 of the Income Tax Ordinance. However, it acknowledged that information concerning associates could be relevant for preparing a speaking assessment order.
The Ombudsman held that such information should instead have been used confidentially for official purposes and retained in the departmental record rather than being expressly incorporated into the assessment orders of associated taxpayers.
The FTO subsequently directed the Chief Commissioner Inland Revenue, RTO Gujranwala, to examine the relevant assessment orders and take action under the Income Tax Ordinance and applicable legal framework to ensure that confidential information reproduced in another taxpayer’s assessment order was no longer disclosed or accessible to persons not lawfully entitled to receive it.
The Ombudsman further directed the department to preserve the integrity of official assessment records while ensuring taxpayer confidentiality. Relevant material could be retained for official, appellate or judicial purposes as part of the confidential departmental record.
The FBR challenged the FTO order, arguing that the Ombudsman had no jurisdiction to review an order previously passed in the exercise of review jurisdiction. The representation was heard on August 27, 2026, with Commissioner Waqas Hanif appearing on behalf of the FBR.
The competent authority observed that every taxpayer, irrespective of relationship with another taxpayer, is legally required to file a tax return and that each return must be examined on its own merits rather than through comparison with other taxpayers’ returns. Finding no infirmity in the FTO decision, the authority dismissed the FBR representation and upheld the Ombudsman’s order.
The President subsequently approved the decision. The order, dated September 4, 2026, relates to six cases—Representation Nos 541 to 546/ITO/2026—between the FBR and Dr Usman Iqbal Aujla and others, Gujranwala.—SOHAIL SARFRAZ
