ISLAMABAD: In a landmark ruling reinforcing taxpayer privacy, Federal Tax Ombudsman (FTO) Zafar Hijazi has directed the Federal Board of Revenue (FBR) to ensure that taxpayers’ fiscal data and confidential tax information are not disclosed or made accessible to unauthorized individuals. The order reaffirms the confidentiality protections guaranteed under Section 216 of the Income Tax Ordinance, 2001.
According to sources, the ruling was issued on a review and rectification petition filed by six taxpayers from Gujranwala against a senior FBR officer over alleged violations of the law and breaches of taxpayer data confidentiality.
The petitioners were represented by Advocate Waheed Shahzad Butt, while the tax department was represented by Commissioner Inland Revenue (CIR) Waqas Hanif and Additional Commissioner Inland Revenue (ADCIR) Hassan Mabroor.
The dispute stemmed from an earlier FTO order dated June 11, 2026, in which the Ombudsman had categorically held that the petitioners’ confidential tax information should never have been reproduced or incorporated into assessment orders issued for other taxpayers. The earlier ruling emphasized that such information should be used strictly for official purposes and maintained in confidence.
However, while the earlier order established that taxpayer confidentiality had been violated, it did not include specific directions for implementing corrective measures. This omission prompted the petitioners to seek rectification.
After hearing both sides, the FTO ruled that the grievance was justified, observing that the absence of implementation directions was an inadvertent omission apparent on the record. The Ombudsman clarified that issuing the additional directions neither altered the original findings nor expanded the scope of the earlier decision, but merely made the relief already granted complete and effective.
The order further stated that tax authorities are not barred from retaining material relevant to official records or appellate proceedings, provided such information remains part of confidential departmental records. The FTO suggested that documents containing sensitive taxpayer information should carry a “Not for Public” annotation or similar designation, instead of including confidential details in assessment orders that may be accessible to other taxpayers.
The Ombudsman directed the Chief Commissioner to review every assessment order identified in the earlier ruling and take all lawful measures necessary to ensure that the petitioners’ confidential tax information, once reproduced in another taxpayer’s assessment order, is no longer disclosed or accessible to anyone not legally authorized to receive it.
The FTO also instructed the department to adopt procedures that preserve the integrity of official assessment records while safeguarding taxpayer confidentiality. Where necessary, such material may be retained as part of confidential departmental records for official or appellate purposes without exposing it to unauthorized persons.
The ruling underscores that the confidentiality of fiscal data and tax returns under Section 216 of the Income Tax Ordinance, 2001, is a statutory obligation rather than a procedural formality. It emphasizes that while tax authorities may retain assessment-related material for legitimate official purposes, they must do so without compromising taxpayers’ legally protected right to confidentiality.
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