ISLAMABAD: The state-owned enterprises have been bound to approach the alternate dispute resolution committees (ADRCs) of the Federal Board of Revenue (FBR) for resolving their tax disputes, involving any amount of tax liability.
The FBR has issued SRO 1377(I)/2024 on Friday to amend Income Tax Rules, 2002.
In the case of a state-owned enterprise, the new rule shall apply to any dispute irrespective of the amount of liability of tax and it is mandatory for the state-owned enterprise to apply to the Board for appointment of a committee if it is aggrieved, the new rules said.
FBR amends Federal Excise Rules, 2005
Any person or class of persons including a state-owned enterprise seeking resolution of any dispute shall submit a written application for alternate dispute resolution to the Board in the Form as set out in Part I of the Schedule to this rule.
The Board shall notify a panel comprising officers of Inland Revenue Service retired in BS-21 and above, chartered accountants, cost and management accountants, advocates, having minimum of ten years’ experience in the field of taxation and reputable businessmen, in accordance with eligibility criteria specified in Part II of the Schedule to this rule.
The member of the committee mentioned shall provide secretariat support to the committee, the FBR added.
The committee 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 as it may deem fit, and shall decide the dispute by majority, within forty-five days of its appointment, extendable by another fifteen days, for reasons to be recorded in writing.
The decision of the committee shall be binding on the commissioner when the applicant; being satisfied with the decision, has withdrawn the appeal pending before the court of law or any appellate authority in the form as set out in Part III of the Schedule to this rule and has communicated the order of the withdrawal to the commissioner: Provided that if the order of the withdrawal is not communicated to the commissioner within sixty days of the service of decision of the committee upon the aggrieved person. The decision of the committee shall not be binding on the commissioner.
On receipt of the committee’s decision the applicant shall make the payment of income tax and other taxes as decided by the committee under this rule and all decisions and orders made or passed shall stand modified to that extent.
Members of the committee appointed shall on decision of the application by the committee. Be paid a lump sum one-time remuneration of one hundred thousand rupees each for their services. The remuneration specified shall be paid by the Board from its budget allocation within fifteen days of the receipt of the decision of the committee, the FBR added.
Copyright Business Recorder, 2024
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