ISLAMABAD: The Federal Tax Ombudsman (FTO) in a landmark order has taken serious exception to the conduct of the Federal Board of Revenue (FBR), Refund Commissioner, for wilfully undermining the authority of the Supreme Court of Pakistan. The FTO categorically observed that there is absolutely no room for any department to undermine, bypass, or dilute the authority of the Supreme Court for any reason whatsoever. The department is constitutionally and legally bound to respect, implement, and follow the judgments of the Supreme Court, and any attempt to circumvent or disregard such judgments is a direct violation of the rule of law and amounts to defiance of binding judicial orders. The FTO held that failure to give appeal effect within the stipulated timeframe reflects delay, neglect, inefficiency, discrimination, and arbitrary exercise of authority, all of which squarely fall within the definition of maladministration under the law. The FTO expressed deep frustration over the department’s persistent reluctance to give appeal effect to finalised appellate orders, despite clear judicial observations and settled legal positions. It was noted that once issues have been conclusively settled at the highest judicial forum, there remains no justification whatsoever for filing references on identical issues. Such conduct serves no lawful purpose and is merely a tactic to delay the issuance of legitimate refunds. Under the applicable law, the department was obligated to give appeal effect within two months of receipt of the appellate order. However, the FTO found that despite the lapse of nearly ten months, the department has failed to comply with this mandatory legal requirement. This landmark order by FTO Hijazi is being widely viewed as a strong reminder to tax authorities that administrative high-handedness cannot override constitutional mandates, and that respect for judicial supremacy is not optional but obligatory in a democratic system governed by the rule of law. Copyright Business Recorder, 2026