Written by Faisal Shahnawaz in Taxation The Federal Tax Ombudsman has directed FBR field formations to verify taxpayer details, premises and authorisation before sealing any business. KARACHI: The Federal Tax Ombudsman (FTO) has directed the Federal Board of Revenue (FBR) to ensure that its field formations exercise the power to seal taxpayers’ business premises strictly in accordance with the law and prescribed procedures. The direction came while disposing of a review petition concerning the sealing of a business premises in Karachi under an order issued against a different taxpayer. The FTO’s latest decisions list includes a review matter relating to complaint No. 12151/KHI/IT/2026, underscoring the forum’s continuing role in addressing complaints of tax maladministration. Business premises sealed against wrong taxpayer The matter concerned Shop No. G-67, Ground Floor, Saima Paari Mall, Hyderi, Karachi, which had been sealed under an order dated May 5, 2026. According to the record, the order was issued against M/s Beejays Pret, NTN 2348594-9. However, the premises actually sealed belonged to M/s Beejays Fabrics, NTN 4782283-3, a separate registered taxpayer. The FTO consequently held that the sealing action had been carried out without lawful authority and constituted maladministration. The FTO’s mandate includes investigating and redressing maladministration by tax functionaries, including actions that are contrary to law, rules or established procedures. FTO orders de-sealing of premises Following its original findings issued on August 4, 2026, the FTO had recommended that the concerned Commissioner Inland Revenue, Regional Tax Office-I (RTO-I) Karachi, immediately de-seal the business premises. The Chief Commissioner Inland Revenue, Corporate Tax Office (CTO) Karachi, was also directed to conduct an inquiry into how an order issued against one taxpayer had been executed against another and submit a compliance report within 30 days. The FTO noted that its use of the word “immediately” was deliberate because continued closure of an operating business could have serious consequences. The forum’s complaint system provides for recommendations to rectify…