Learn about taxpayer representation rules, authorised representatives, restrictions, and professional conduct under the Income Tax Ordinance.
Under the Income Tax Ordinance, taxpayers are granted the right to appear before tax authorities through an authorised representative, except when personal attendance is mandated under section 176. This provision facilitates representation in proceedings before the Commissioner, Commissioner (Appeals), or the Appellate Tribunal.
Eligibility Criteria for Authorized Representatives
An authorized representative must either qualify as a representative under section 172 or belong to specific categories, including a relative of the taxpayer, a full-time employee, a scheduled bank officer with whom the taxpayer has dealings, a legal practitioner entitled to practice in Pakistan, an accountant, or an income tax practitioner.
Restrictions on Authorized Representatives
Certain individuals are prohibited from acting as authorized representatives. These include persons dismissed or removed from service in the Income Tax Department, former employees who resigned after at least two years of service within a specified restriction period, retired officials for cases they handled within a year prior to retirement, insolvent individuals, and those convicted of income tax offences.
Professional Misconduct and Restrictions
Additionally, legal practitioners and accountants found guilty of professional misconduct by their respective disciplinary bodies face restrictions on representing taxpayers. Others found guilty of misconduct related to tax proceedings may be barred by the Commissioner through a written order.
Appeals and Enforcement
Before issuing such an order, the Commissioner must provide the accused person with an opportunity to present their case. Those affected by these orders have the right to appeal to the Board within thirty days, with possible extensions under valid circumstances. Any restrictive order only takes effect after thirty days of notification or the conclusion of an appeal.
Rules and Regulations for Tax Practitioners
Furthermore, the Board holds authority to formulate rules regarding the registration and conduct of income tax practitioners. The definition of an accountant includes chartered accountants, cost and management accountants, and members of recognized accounting associations. Income tax practitioners must be registered with the Board and either possess prescribed qualifications or have served in the Income Tax Department for at least ten years at a post not below that of an Income Tax Officer.
This framework ensures that taxpayers have access to qualified representation while upholding ethical and professional standards within the tax system.
