Any person dissatisfied with any order passed by a Commissioner of Inland Revenue has the right of appeal before the Federal Board of Revenue (FBR).
Disputes between taxpayers and tax authorities are not uncommon, especially when it comes to matters of quantifying taxable income, determining tax liability, or imposing penalties.
To address such disagreements, individuals and entities in Pakistan have the right to appeal before the Federal Board of Revenue (FBR) against any order issued by a Commissioner of Officer Inland Revenue.
Here’s what you need to know about the process of filing a tax appeal with the FBR:
Who Can File an Appeal:
• Individuals: The individual taxpayer himself.
• Association of Persons (AOP): Any partner or member of the association.
• Companies: The principal officer.
• Deceased Individual: The legal representatives of the deceased.
• Individual under Legal Disability or a Nonresident Person: Their respective “representative.”
Common Reasons for Appeals: Appeals typically arise due to disagreements between taxpayers and tax collectors (Inland Revenue department) regarding various aspects of taxation, including:
• Quantification of taxable income.
• Determination of tax liability.
• Imposition of default surcharge, penalties, etc.
Appeal Process:
1. Submission of Tax Due: To initiate the appeal process, the appellant must submit the tax due along with the return of income, based on the income declared.
2. Time Limit: The appellant must file the appeal before the Commissioner (Appeals) within thirty (30) days from the date of receipt of notice of demand related to an assessment, penalty, or any other order.
Further Steps: If the appellant remains dissatisfied with the decision of the Commissioner (Appeals), they have the option to escalate the matter:
• Appellate Tribunal: The next stage of appeal is before the Appellate Tribunal.
• Higher Courts: If still unsatisfied, the appellant can seek recourse in the Higher Courts of the country.
Conclusion: Filing a tax appeal with the FBR is a fundamental right granted to taxpayers in Pakistan. It provides a mechanism for resolving disputes and ensuring fair treatment in matters of taxation. By understanding the appeal process and adhering to the prescribed procedures and timelines, individuals and entities can navigate the system effectively and seek redressal for any grievances they may have against tax assessments or orders issued by tax authorities.
