The Federal Board of Revenue (FBR) has taken significant steps towards streamlining tax litigation processes by drafting new legislation aimed at expediting the disposal of tax cases.
The proposed amendments, likely to be introduced in the Income Tax Ordinance, 2001, mark a pivotal shift in handling appeals within the realm of Inland Revenue.
According to media reports, the FBR has finalized the draft of the Tax Law (First Amendment) Ordinance 2024, signaling a decisive move towards reforming the existing tax appeal mechanisms. One of the key amendments proposed under this ordinance is the abolition of the post of Commissioner Inland Revenue (Appeals), aimed at accelerating the resolution of pending cases.
The decision to eliminate the role of Commissioner Inland Revenue (Appeals) is primarily motivated by the need to address delays in the adjudication process. By reducing bureaucratic layers, the FBR aims to streamline the appeals process and ensure timelier resolution of tax disputes.
Under the proposed amendments, the forum for the first appeal, previously presided over by the Commissioner IR (Appeals), will now be transferred to the Appellate Tribunal (Inland Revenue). This shift signifies a fundamental restructuring of the appellate system, aimed at enhancing efficiency and reducing the backlog of cases.
Furthermore, the draft ordinance seeks to impose stricter timelines for filing appeals and rendering decisions. Taxpayers will now have a reduced window of 30 days to file appeals before the Appellate Tribunal (Inland Revenue), down from the existing 60 days. Similarly, the time allocated for the tribunal to adjudicate appeals has been curtailed from 180 days to 120 days, ensuring swifter resolution of disputes.
Sources within the FBR have underscored the potential benefits of these proposed amendments, highlighting their potential to alleviate the burden of litigation on both tax authorities and taxpayers. By expediting the disposal of cases, the amendments aim to foster greater efficiency and transparency within the tax adjudication process, ultimately benefiting all stakeholders involved.
The move towards legislative reform reflects the FBR’s commitment to modernizing tax administration and fostering a more conducive environment for taxpayers. By addressing bottlenecks in the appeals process and enhancing procedural efficiency, the proposed amendments seek to instill greater confidence in the tax system and promote compliance among taxpayers.
As the draft legislation awaits formal approval and enactment, stakeholders await further details regarding its implementation and potential impact on tax administration and compliance. With the FBR spearheading efforts to overhaul the tax adjudication framework, expectations are high for a more streamlined and responsive system that meets the evolving needs of taxpayers and tax authorities alike.
