Karachi, August 13, 2024 – The Pakistan Tax Bar Association (PTBA) has voiced serious concerns regarding the functioning of the Appellate Tribunal Inland Revenue (ATIR), highlighting issues that threaten to undermine the tribunal’s credibility and the broader tax system.
In a letter addressed to Azam Nazeer Tarar, Minister of Law and Justice, the PTBA detailed a series of grievances from lawyers and tax practitioners, pointing to troubling practices within the ATIR that are eroding taxpayer trust.
The PTBA’s letter paints a grim picture of the current state of the ATIR, describing a pattern of behavior that calls into question the integrity of the tribunal. Complaints have been pouring in from legal professionals regarding the tribunal’s handling of cases, with specific concerns about the conduct of the benches, disregard for binding orders, and unethical practices during proceedings.
One of the most concerning issues raised by the PTBA is the passing of orders without any reference to the documentary evidence presented or the submissions made during hearings. This practice, they argue, undermines the very foundation of a fair trial and compromises the tribunal’s role in ensuring impartial adjudication.
The PTBA’s observations suggest that the tribunal is nearing dysfunctionality. According to the letter, proceedings often start late, with some cases only being heard after noon, and in certain instances, tribunal members fail to show up altogether. Such delays not only frustrate taxpayers and their representatives but also cast a shadow over the tribunal’s commitment to timely justice.
Moreover, the PTBA has highlighted that orders from the tribunal are either not received for extended periods or are non-speaking, meaning they lack detailed reasoning. There are also allegations that decisions are being made based on factors other than merit, further eroding confidence in the tribunal’s impartiality.
The PTBA has also drawn attention to the implications of the Tax Laws Amendment Act, 2024, which has made the ATIR the first appellate forum for certain cases. Given the tribunal’s current state, the PTBA warns that taxpayers are rapidly losing trust in the appellate process, a development that could have far-reaching consequences for Pakistan’s tax revenue collection system.
The association’s letter emphasizes that the growing trust deficit between taxpayers and the government, fueled by the tribunal’s perceived inefficiencies, could jeopardize the entire tax system. The PTBA stresses that if these issues are not addressed promptly, the situation could lead to a significant decline in taxpayer compliance, further straining the country’s already challenged revenue collection efforts.
In light of these grave concerns, the PTBA has urged the Minister of Law and Justice to intervene immediately. They have called for the formation of an oversight committee to thoroughly investigate the issues plaguing the ATIR. Additionally, the PTBA has requested that the process of appointing new tribunal members be expedited on a war footing. They argue that any delay in this regard will only worsen the situation, depriving taxpayers of their fundamental right to a fair trial and natural justice.
The PTBA’s letter serves as a wake-up call for the government, highlighting the urgent need for reforms to restore faith in the tax appellate system. Without swift and decisive action, the association warns, the integrity of Pakistan’s tax system could be irreparably damaged, with far-reaching consequences for the country’s economy.