Federal Board of Revenue issued Notifications ref: SRO 69(1)/2019 dated January 24, 2019.
The aforementioned SRO has been issued whereby following draft Rule “231C: Alternate dispute resolution” to substitute the existing Rule with same number in Income Tax Rules, 2002 pursuant to amendments presented vide SRO 1352(1)/2018. 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 134A.
- The Rule defines “applicant”, “ Committee” & “dispute”
- The person interested 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 dissolve 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 from a panel notified by the Board (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)
- The shall notify a panel of a above mentioned retired judge, senior chartered accountant, senior advocates and reputable businessmen as per eligibility criteria specified in Part II of the Schedule.
- After notification, the parties shall withdraw appeal pending before any Court or appellant authority related to hardship in the form set out in Part III of the Schedule. 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, lower of Rs. 75,000 or 4% of disputed tax demand and for person (b) of Committee, lower of Rs.50,000 or 3% of disputed tax demand. This will be paid from budget allocation of Board within 15 days of receipt of order.
Link of Document(s)
- SRO 1352(1)/2018
- SRO 69(1)/2019