'Curtailing tax litigations cost CBR dearly'

The Central Board of Revenue (CBR) has scarified huge amount of revenue in a bid to curtail tax litigation to the benefit of taxpayers. This was stated by Salman Nabi, Member, Income Tax, CBR, at a panel discussion, on Alternative Disputes Resolution (ADR) Committees, organised by Income Tax bar Association, Karachi, on Monday. He said that 1.25 million income tax returns were accepted as assessment under the Universal Self-Assessment Scheme. Similarly, the CBR stopped collection of advance tax to eliminate refunds, which would cause a loss of Rs 16 billion to the net revenue.
Emphasising the pivotal role of ADR panels he referred to the massive pendency of tax appeals with the CBR, amounting to 80,000, of which 56000 appeals were at the first stage. The CBR reviewed the appeals and withdrew a large number of them, he added.
Salman said that Pakistan did not adopt the complex system of ADR in vogue in USA and South Africa and, instead, chose a simple form to resolve the tax disputes.
He dispelled the doubts of tax practitioners on the intentions behind creating ARD panels and said that if there was a delay in resolution of any case it was in the interest of the taxpayer to provide him justice from the ADR forum. Citing instances of CBR's good intentions behind the ADR he said that in a case heard by the Islamabad committee the CBR accepted the dissent view of one of the members and decided the case in favour of the taxpayer involving Rs 500 million tax. He dispelled the fears expressed by some speakers that the role of legal practitioners would be reduced and their income would be affected.
The Member Income Tax called for extending the 30 days' period fixed for the ADR to settle the dispute. He said that delay in verdict of the Committees was due to the CBR's desire to settle all issues once for all.
The Director General of Large Taxpayers Unit (LTU), Shahid Jamal, said that the ADR had not been given powers for a final verdict in cases resolved and it could only make recommendations to CBR. This has been done so that the verdicts given by various ADRs do not clash.
Shabbar Zaidi, a leading tax practitioners, supported the creation of ADRs and said that such forums had been introduced in Sales Tax long ago. He said that the assessee would not lose anything if he lost the case in ADR and he could go for appeal in a superior court.
Those who participated in panel discussion included Rehan Hasan Naqvi, Jan-e-Alam, Muhammad Athar Saeed, Younus Rizwan Sheikh, and Mushtaq Ahmad Vohra.
Earlier, the President of IT Bar Saqib Mahmood presented address of welcome.