FTO’s orders: President dismisses 2 sets of representations by FBR

In a significant ruling, President Asif Ali Zardari dismissed two sets of representations by the Federal Board of Revenue (FBR) against the Federal Tax Ombudsman (FTO) orders. These orders protect citizens' financial data from unauthorized disclosure. The President confirmed taxpayers' constitutional right to fiscal privacy. The dispute originated from six identical complaints lodged by family members against a senior tax employee for unauthorized disclosure of confidential data without lawful authority.

Initially, the FTO found no maladministration, but later reversed its decision, stating that confidential tax information should only be used "in confidence for official purposes." The Chief Commissioner was ordered to examine the matter and issue corrective directions. On June 29, 2026, the FTO made this relief effective, directing the FBR to ensure that the petitioners' confidential information is not disclosed to unauthorized persons.

The FBR challenged both orders before the President, arguing that the FTO lacked jurisdiction to review its own review order and that cross-referencing wealth accumulation among related taxpayers was legally necessary. However, the President dismissed the FBR's stance, emphasizing that confidential information should be used for official records, not incorporated into assessment orders of other taxpayers.

Both representations were dismissed, and the FTO's orders were upheld, marking a significant victory for taxpayers' constitutional right to fiscal privacy.