The taxpayers have been given facility to resolve disputes relating to income tax liability, admissibility of refund and waiver/fixation of penalty or fine under 'income tax alternative dispute resolution'.
The CBR on Wednesday issued draft procedure of 'Income tax alternative dispute resolution' by including a new rule - 231C - in the Income Tax Rules 2002.
The tax authorities have given 15 days to taxpayers to submit comments on the draft rules, which would be notified after incorporating meaningful suggestions of the private sector.
The taxpayers would have to pay the remuneration of the members of the committee which would resolve dispute, and the CBR has also bound the taxpayers to submit whether the issue brought for dispute resolution is pending before Income Tax Appellate Tribunal (ITAT), High Court or Supreme Court.
Under the procedure, any person interested in resolution of dispute shall submit a written application, for alternative dispute resolution, to the Board.
The authorities after examination of the contents of the application by a taxpayer and facts stated therein and on satisfaction that the application may be referred to a committee for the resolution of the hardship or dispute.
The committee would comprise Director General, Large Taxpayers Unit or Commissioner, Medium Taxpayers Unit or any other Commissioner or officer of the Income Tax Department nominated by the Board; a Fellow of Chartered Accountants, registered with the Institute of Chartered Accountants of Pakistan or an Associate of Cost and Management Accountant, an advocate of High Court or Income Tax Practitioner having at least 25 reported cases in a reputed journal to his credit and a reputable taxpayer.
The Board may appoint one of the members of the committee to be its Chairman.
The rules specified that an application filed under this rule may be disposed of by the committee within 30 days of its constitution provided that the time so specified may, if requested by the chairman of the committee for reasons to be recorded in the request, be extended by the Board to such extent and subject to such conditions and limitations as it may deem proper.
The chairman of the committee shall be responsible for deciding the procedure to be followed by the committee.
The committee has been given authority to conduct inquiry, seek expert opinion, direct any officer of income tax or any other person to conduct an audit and make recommendations to the Committee in respect of dispute or hardship.
It may determine the issue and may thereafter seek further information or data or expert opinion or make or cause to be made such inquiries or audit to formulate its recommendations.
The applicant may withdraw the application made under these rules at any time before the committee submits its recommendations to the Board.
The applicant shall pay members of the committee, other than public servants, remuneration covering travelling allowance and daily allowance.
The extent and amount of remuneration and the manner of payment thereof shall be decided by the chairman of the committee under intimation to the applicant.
The chairman of the committee shall send a copy of the recommendations of the committee to the Board, applicant and the concerned Commissioner of Income Tax, simultaneously.
The Board on its own motion or on the request of the applicant may refer the recommendations of the Committee for rectification of any mistake apparent from record or for reconsideration of the facts or law, as the case may be, not considered earlier by the committee.
The committee after rectification of the mistake or reconsideration of the facts or law as aforesaid shall furnish to the Board its fresh or amended recommendation within such period as specified by the Board.
The Board, after examining the recommendations of the committee shall finally decide the dispute or hardship and make such orders as it may deem fit for the resolution of the dispute or hardship under intimation to the applicant, chairman of the committee and the concerned Commissioner.
The copy of order passed by the Board shall be provided to the applicant and to the Commissioner having jurisdiction over the case for modification of all decisions, orders and judgements passed in respect of the said dispute or hardship, within such period as may be specified by the Board in the order.
On receipt of the Board's order as aforesaid, the concerned Commissioner shall implement the order in such manner and within such period as may be specified by the Board in the order.
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