ISLAMABAD: Federal Tax Ombudsman (FTO) has refused to entertain a taxpayer’s complaint of non-payment of refund where proceedings of tax fraud are pending at the level of Federal Board of Revenue (FBR). According to an order of the FTO issued on Tuesday, admittedly, the complainant e-filed refund application for Tax Year 2024 on 12-11-2024, however, department has pleaded that proceedings against the taxpayers are pending finalization on the issue of fake flying invoices and claiming false input on the strength of these fake invoices issued by dummy and non-existent unit i.e. M/s WMA Brothers Pvt Ltd. The menace of fake & flying invoices cannot be treated as Sales Tax specific phenomenon it has very serious fallouts for direct taxation as well. Moreover, this relief forum cannot intervene in a case wherein tax fraud proceedings are pending on any account, FTO order said. Precisely, the Complainant filed return of income/statement of taxation by claiming refund of Rs15.012 million for Tax Year 2024. According to the AR the Complainant…