Introduction

Federal Board of Revenue issued Notifications ref: SRO 1352(1)/2018 dated November 6, 2018.

Commentary

The attached SRO 1352(1)/2018 has been issued whereby following draft Rule “231C. Alternate dispute resolution” to substitute the existing Rule with same number in Income Tax Rules, 2002. The Rule incorporates the following significant  corresponding changes introduced through Finance Act, 2018 vide Section 134A of the Income Tax Ordinance, 2001 relating to Alternate Dispute Resolution.

  • The Rule is applicable on all cases of disputes brought or specified for resolution under section 134.
  • The Rule defines “applicant”, “ Committee” & “dispute”
  • The person is required to submit an application (the format of draft application has also been introduced in the Schedule)
  • The FBR will examine the contents of application
  • On satisfaction the application may be referred to the Committee for the resolution of hardship
  • The time limit of 60 days for resolution has been specified, however the section 134A(5)&(8) prescribes period of 120 days and in case of failure, the Board shall disolve the Committee and the matter will be decided by the relevant Court or appellant authority that issued notice of withdrawal (the appeal will be decided as if no withdrawal was made)
  • The Committee will consist on (a) A Commissioner IR rank Officer, (b) a person nominated by the Appellant (a Senior CA, Senior Advocate, reputable businessman as nominated by Chambers of Commerce and Industry, (c) a retired District or session Judge nominated under sub-ruler (5) while sub-rule (5) specifies that the members (a) & (b) will select member (c) from a FBR list who will be chairperson of the Committee)
  • After notification, the parties will withdraw appeal pending before any Court or appellant authority related to hardship. Proceedings of Committee will be started after receipt of withdrawal of appeal
  • The Chairperson shall be responsible for deciding the procedure to be followed
  • The Committee may seek information, expert opinion, make inquiries and conduct audit too.
  • The order of Committee shall be binding on all parties.
  • The remuneration have also been prescribed i-e for Chairperson, Rs. 250,000 and for person (b) of Committee, Rs.100,000. This will be paid from budget allocation of Board within 15 days of receipt of order.

The SRO gives 7 days time from date of publication, for any objection or suggestion by parties effected.

Link of Document(s)

201811616115839402SRO1352