FBR releases draft rules for dispute solving panels

KARACHI: The Federal Board of Revenue (FBR) on Tuesday issued draft rules for the smooth functioning of Alternate Dispute Resolution Committee (ADRCs) aimed at addressing taxpayers' complaints in the best possible ways to mitigate litigation in taxation matters.

The previous government, through the Finance Bill 2018, had modified the Alternative Dispute Resolution (ADR) mode to make it the first choice for any aggrieved person for out-of-court settlement of tax disputes. Under the proposed rules, ADRCs were to be set up for making existing procedures simple to facilitate taxpayers to a greater measure.

The FBR issued SRO 1352(I)/2018 to amend Income Tax Rules, 2002 for quick resolution of disputes between taxpayers and commissioners of Inland Revenue.

As per the draft rules, a taxpayer may opt to resolve his issue through ADRC by submitting an application to the FBR.

It said the FBR was bound to refer an application to ADRC within 60 days and nominate the committee members along with chairman of the committee.

The law dictates the members of the commission should comprise an officer not below the rank of commissioner of Inland Revenue and a person nominated by the applicant.

The new rules also make it mandatory that the committee chairperson should be a retired judge.

It also says the decision of its majority members shall be construed as decision of the committee and the committee shall decide the dispute within 120 days.

It is made mandatory that the decision of the committee shall be binding on the commissioner and aggrieved person.

The draft rules also recommend remunerations for committee chairman and members.