Tag: Alternate Dispute Resolution

  • Mechanism revamped for tax dispute resolution

    Mechanism revamped for tax dispute resolution

    KARACHI: The mechanism of alternative dispute resolution (ADR) has been revamped through Finance Act, 2022 and same has been implemented from July 01, 2022.

    According to explanation to the Section 134A of the Income Tax Ordinance, 2001 amended through Finance Act, 2022, analysts at PwC A. F. Ferguson & Co. said that under the revamped procedure for ADR in all three fiscal laws, an aggrieved person may apply for resolution of a dispute pending before any court of law or appellate forum, through ADR mechanism in following cases:-

    READ MORE: Simplified tax regime for shopkeepers implemented

    a) Where the liability of tax is Rs 100 million or above or admissibility of refund;

    b) The extent of waiver of default surcharge & penalty; or

    c) Any other specific relief required to resolve the dispute.

    However, any case where criminal proceedings have been initiated fall outside the purview of ADR mechanism.

    Previously, in case of a dispute where a mixed question of law and fact was involved, the Federal Board of Revenue (FBR) was empowered to examine as to whether ADR Committee should be constituted or not. This hindrance has been removed.

    Under the new mechanism, the taxpayer has a right to nominate a person from the panel notified by the FBR except where the relevant Chartered Accountant or an Advocate has been an authorized representative of the taxpayer.

    READ MORE: Pakistan withdraws tax amnesties for industrial promotion

    Furthermore, the taxpayer will have to withdraw his appeal for seeking relief under ADR.

    Following is the text of Section 134A that is substituted through the Finance Act, 2022:

    134A. Alternative Dispute Resolution. — (1) Notwithstanding any other provision of the Ordinance, or the rules made thereunder, an aggrieved person in connection with any dispute pertaining to—

    (a) the liability of tax of one hundred million and above against the aggrieved person or admissibility of refund, as the case may be;

    (b) the extent of waiver of default surcharge and penalty; or

    (c) any other specific relief required to resolve the dispute; may apply to the Board for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application, which is under litigation in any court of law or an Appellate Authority, except where criminal proceedings have been initiated.

    READ MORE: Pakistan expands tax exemptions under foreign treaties

    (2) The application for dispute resolution shall be accompanied by an initial proposition for resolution of the dispute, including an offer of tax payment, from which, the applicant would not be entitled to retract.

    (3) The Board may, after examination of the application of an aggrieved person, appoint a committee, within forty five days of receipt of such application in the Board, comprising,—

    (i) Chief Commissioner Inland Revenue having jurisdiction over the case;

    (ii) person to be nominated by the taxpayer from a panel notified by the Board comprising –

    (a) chartered accountants, cost and management accountants and advocates having a minimum of ten years’ experience in the field of taxation;

    (b) officers of the Inland Revenue Service who have retired in BS 21 or above; or

    (c) reputable businessmen as nominated by Chambers of Commerce and Industry:

    Provided that the taxpayer shall not nominate a Chartered Accountant or an advocate if the said Chartered Accountant or the advocate is or has been an auditor or an authorized representative of the taxpayer; and

    READ MORE: Capital gains tax revamped on disposal of immovable properties

    (d) person to be nominated through consensus by the members appointed under (i) and (ii) above, from the panel as notified by the Board in clause (ii) above:

    Provided that where the member under this clause cannot be appointed through consensus, the Board may nominate a member proposed by the taxpayer eligible to be nominated as per clause (ii).

    (4) The aggrieved person, or the Commissioner, or both, as the case may be, shall withdraw the appeal pending before any court of law or an Appellate Authority, after constitution of the committee by the Board under sub-section (3), in respect of dispute as mentioned in sub-section (1).

    (5) The committee shall not commence the proceedings under sub-section (6) unless the order of withdrawal by the court of law or the Appellate Authority is communicated to the Board:

    Provided that if the order of withdrawal is not communicated within seventy five days of the appointment of the committee, the said committee shall be dissolved and provisions of this section shall not apply.

    (6) The Committee appointed under sub-section (3) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of the Inland Revenue or any other person to conduct an audit and shall decide the dispute by majority, within one hundred and twenty days of its appointment:

    Provided that in computing the aforesaid period of one hundred and twenty days, the period, if any, for communicating the order of withdrawal under sub-section (5) shall be excluded.

    (7) The decision by the Committee under sub-section (6) shall not be cited or taken as a precedent in any other case or in the same case for a different tax year.

    (8) The recovery of tax payable by a taxpayer in connection with any dispute for which a Committee has been appointed under sub-section (3) shall be deemed to have been stayed on withdrawal of appeal up to the date of decision by the Committee or the dissolution of the Committee whichever is earlier.

    (9) The decision of the committee under sub-section (6) shall be binding on the Commissioner and the aggrieved person.

    (10) If the Committee fails to decide within the period of one hundred and twenty days under sub-section (6), the Board shall dissolve the committee by an order in writing and the matter shall be decided by the court of law or the Appellate Authority which issued the order of withdrawal under sub-section (5) and the appeal shall be treated to be pending before such court of law or the Appellate Authority as if the appeal had never been withdrawn.

    (11) The Board shall communicate the order of dissolution to the court of law or the Appellate Authority and the Commissioner.

    (12) The aggrieved person, on receipt of the order of dissolution, shall communicate it to the court of law or the Appellate Authority, which shall decide the appeal within six months of the communication of said order.

    (13) The aggrieved person may make the payment of income tax and other taxes as decided by the committee under subsection

    (6) and all decisions, orders and judgments made or passed shall stand modified to that extent.

    (14) The Board may prescribe the amount to be paid as remuneration for the services of the members of the Committee, other than the member appointed under clause (i) of sub-section (3).

    (15) The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.

  • FBR notifies panels for alternate dispute resolution

    FBR notifies panels for alternate dispute resolution

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday notified panel of persons in all major cities of the country for alternate dispute resolution.

    The FBR issued SRO 810(I)/2020 to notify the setting up the committees under Income Tax Ordinance, 2001, Sales Tax Act, 1990 and Federal Excise Act, 2005.

    The FBR notified the panel of the following persons for constitution of committees for Alternate Dispute Resolution:

    KARACHI:

    01. Rehmatullah Khan Wazir, Ex-Member, FBR

    02. Khawaja Tanweer Ahmed, Ex-Member, FBR/Advocate

    03. Dr. Tariq Masood, Ex-Member, FBR

    04. Vishno Raja Qavi, Ex-Commissioner/Advocate

    05. Misri Ladhani, ex-Chief Commissioner/Advocate

    06. Agha Shahid Majeed, Ex-Member, Tribunal

    07. Iftikhar Qutub, Ex-Director General, Customs

    08. Adnan Mufti, Chartered Accountant

    09. Hassan Naeem, Chartered Accountant

    10. Hyder Ali Patel, Chartered Accountant

    11. Saqib Masood, Chartered Accountant

    12. Qadeer Ahmed, Chartered Accountant

    13. Ms. Asra Rauf, Chartered Accountant

    14. Muhammad Raza, Chartered Accountant

    15. Amin Bandukwala, Businessman

    16. Bilal Mahpara, Chartered Accountant

    17. Abid Shaban, Advocate

    18. Ghulam Abbas Kertwala, Chartered Accountant

    19. Zeeshan Zafar (KPMG), Chartered Accountant

    20. Zeeshan Merchant, Chartered Accountant

    21. Gohar Manzoor, Chartered Accountant

    22. Ameen Baimani, Chartered Accountant/Businessman

    23. Imtiaz Zuberi, Advocate

    24. Shaikh Shakeel Ahmed, Businessman

    25. Saleem Siddiqui, Chartered Accountant

    26. Qadir Memon, Tax Practitioner

    27. Aijaz ud Din Qureshi, Advocate

    28. Zubair Tufail, Taxpayer

    29. Abdul Qadir Memon, ex-President PTBA

    30. Arshad Siraj, Advocate

    31. Majid Kandawala, Chartered Accountant

    32. Ashfaq Tola, Chartered Accountant

    33. Abdul Haseeb Khan, Taxpayer

    34. Wajid Jawwad, Taxpayer

    35. Anwar Aziz, Businessman

    36. Imran Shuakat, Businessman

    37. Mirza Ikhtiyar Baig, Industrialist

    38. Ali A Rahim, Tax Practitioner

    39. Ameer Bakhsh Metlo, Advocate

    40. Muhammad Amin Faheem, Chartered Accountant

    41. Mohammad Idrees, Businessman

    42. Yasin Merchant, Advocate

    43. Shekha Mufti, Chartered Accountant

    44. Abdul Khaliq Khatri, Advocate

    ISLAMABAD:

    01. Babar Bilal, Advocate

    02. Saeed Ahmed Zaidi, Advocate

    03. Aazar Hameed, Chartered Accountant

    04. Ms. Sadia Nazir, Partner KPMG

    05. Waqar Zafar, Chartered Accountant

    06. Tariq Sadiq, Director, Sihala Flour Mills

    07. Hafiz Muhammad Idrees, Advocate

    08. Waqar Zafar Ahmed, Chartered Accountant

    09. Ch. Naeem ul Haq, Advocate

    10. Shahzad Qazi, Chartered Accountant

    11. Syed Tauqeer Bukhari, Advocate

    12. Zahid Latif Khan, MD Islamabad Stock Exchange

    LAHORE:

    01. Nameed Akhtar Sheikh, Chartered Accountant

    02. Asim Zulfiqar, Chartered Accountant

    03. Muhammad Awais, Chartered Accountant

    04. Mansoor Baig, Advocate

    05. Khurram Shahbaz Butt, Advocate

    06. Zeeshan Ijaz, Chartered Accountant

    07. Sufi Tanveer, Businessman

    08. Rizwan Bashir Sheikh, FCA

    09. Syed Mehtab Haider Kazmi, ACCA

    10. Amir Younas, CA

    11. Muhammad Ijaz Ali Bhatti, Advocate

    12. Saeed ur Rehman Dogar, Advocate

    13. Adil Jillani, Chartered Accountant

    14. Mardan Ali Zaidi, Businessman

    15. Ihsan ur Rehman, Advocate

    RAWALPINDI:

    01. Zahid Idrees Mufti, Advocate

    02. Muhammad Amir Malik, Advocate

    03. Malik Itaat Hussain Awan, Advocate

    04. Dr. G M Chaudhary, Advocate

    05. Muhammad Irshad Chaudhary, Advocate

    06. Ch. Naeem ul Haq, Advocate

    07. Habib Fakhar ud Din, FCA

    08. Shehzad Qazi, FCA

    09. S M Naseem, Businessman

    10. Malik Shahid Saleem, Businessman

    GUJRANWALA:

    01. Mian Abdul Ghaffar, Advocate

    02. Siddiqui Ahmed Ch., Advocate

    03. Abid Hussain Awan, Advocate

    04. Abid Raza Kazmi, Advocate

    05. Siddique Ahmed Bhatti, Advocate

    06. Ch. Shafaqat Ali Buttar, Chartered Accountant

    07. Ghazanfar Mehmod, Chartered Accountant

    08. Malik Zaheer ul Haq, Businessman

    09. Mian Umer Saleem, Businessman

    10. Hafiz Abdul Waheed, Businessman

    ABBOTTABAD:

    01. Agha Sbabbir Ahmed Awan, Advocate

    02. Bashir Ahmed, Advocate

    03. Mudassir Malik, Advocate

    04. Rashid Javed, Accountant

    MULTAN:

    01. Sh. Fazal Elahi, Businessman/President Multan Chamber of Commerce and Industry

    02. Talat Javed, Chartered Accountant

    03. A Moeed Khawaja, Tax Practitioner

    04. Waqas Khalid, Chartered Accountant

    05. Rashid Bashir, Advocate

    SUKKUR

    01. Saeed Akhtar, Advocate

    02. Eng. Abdul Fatah Shaikh, Businessman

    03. Anwar Ali Janwari, Advocate

    04. Aamir Ali Khan Ghouri, Taxpayer

    05. Asif Iqbal Sheikhani, Advocate

    06. Ludomal, Taxpayer

    QUETTA:

    01. Kamal Hassan Siddiqui, Advocate

    02. Muhammad Muneeb, FCMA

    03. Abdul Samad, Businessman

    04. Badaruddin, Businessman

    SIALKOT:

    01. Ch. Ahmed Zulfiqar Hayat, Businessman

    02. Aftab Hussain Nagra, Advocate

    03. Malik Muhammad Ashraf Awan, Businessman

    04. Zulfiqar Ahmed Nasir, Chartered Accountant

    FAISALABAD

    01. Ahammad Jabbar, FCA

    02. Muhammad Yousaf Shekh, Nominee of PTBA

    03. Asad Ali Malkana, Nominee of PTEA

    04. Farooq Yousaf, Nominee of FCCIF

    05. Khan Muhammad, Chartered Accountant

    06. Mian Muhammad Irshad, FTBC

    07. Muhammad Naseeb, PTEA

    08. Kashif Zia, FCCIF

    09. Khubaib Ahmed, FTBA

    10. Azizullah Goheer, PTEA

    11. Arif Ehsan Malik, FCCIF

    SAHIWAL

    01. Shaikh Muhammad Ahsan, Advocate

    02. Faiz ul Hassan Gilani, Advocate

    SARGODHA

    01. Gulzar A Sheikh, Taxpayer/Businessman

    02. Mukhtar Ahmed Mirza, Taxpayer/Businessman

    03. Tariq Yaqoob, Taxpayer/Businessman

    04. Umar Ashraf Bhatti, Advocate

    05. Malik Naik Muhammad, Advocate

    06. Rana Saghir Ahmed, Advocate

    07. Muhammad Safdar Saleemi, Advocate

    BHAWALPUR

    01. Javed Iqbal Ch., Advocate

    02. Iqbal Haider, FCMA

    03. Masood A Majeed, Chairman, Asia Ghee Mills (Pvt) Ltd

    04. Dr. Rana Muhammad Tariq, Managing Director, Shamim Group of Industries

    05. Mian Mehmood Ahmad, ex-Chairman PCGA, Rahimyar Khan

    06. Aijaz Nazam, ex-President, BCCI

    HYDERABAD:

    01. A S Jaffri, Advocate

    02. Shahid Hussain Abbasi, Advocate

    03. Muhammad Asif Memon, Businessman

    04. Doulat Ram, Businessman

    05. Turab Ali Khoja, Businessman

    06. Tanweer Arif, Chartered Accountant

    07. Saman Mal, Businessman

    08. Zubair Ghangra, Businessman

    09. Imamuddin Shoqeen, Businessman

    PESHAWAR:

    01. Muhamamd Ahmad Shahid, Chartered Accountant

    02. Ghulam Shoib Jally, Advocate

    03. Engr. Maqsood Anwar Pervez, Businessman

    04. Zahidullah Shinwari, Businessman

  • FBR constitutes ADRCs for eight cities

    FBR constitutes ADRCs for eight cities

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday constituted Alternative Dispute Resolution Committees (ADRCs) for speedy disposal of cases in Inland Revenue in eight cities of the country.

    The FBR issued SRO 657(I)/2019 to notify the panel of the following persons for constitution of committees for alternative dispute resolution, namely :-

    SIALKOT

    1. Z.A. Nasir, C.A, Sialkot.

    2. Ch. Ahmad Zulfiqar Hayat, Businessman, Sialkot.

    3. Aftab Hussain Nagra, Advocate, Sialkot.

    4. Muhammad Arshad Nawaz Maan, Tax Practitioner, Sialkot.

    5. Mahar Ghulam Mujtaba, Representative Trade Bodies, Sialkot.

    6. Khalid Pervaiz Javaid Butt, Representative Trade Bodies, Sialkot.

    FAISALABAD

    1. Hamid Masood, C.A, Faisalabad.

    2. Zahid Suleman, C.A, Faisalabad.

    3. Muhammad Anwar Abid, Advocate High Court, Faisalabad.

    4. Syed Zia Alumdar Hussain, Trade Bodies Representative, Faisalabad.

    5. Mian Tanveer Ahmad, Trade Bodies Representative, Faisalabad.

    6. Engineer Hafiz Ihtasham Javed, Trade Bodies Representative, Faisalabad.

    7. Khalid Pervez, Advocate High Court, Faisalabad.

    8. Muhammad Amjad Khawaja, Trade Bodies Representative, Faisalabad.

    9. Ch. Habib Ahmad Gujjar, Trade Bodies Representative, Faisalabad.

    10. Jawad Asghar, Trade Bodies Representative, Faisalabad.

    11. Mr, Muhammad Ashraf Ghandi, Businessman, Faisalabad.

    12. Rana Muhammad Younis, Businessman, Faisalabad.

    13. Ch. Khalid Mahmood, District and Session Judge, Faisalabad.

    SAHIWAL

    1. Muhammad Abid, Commissioner IR, Sahiwal.

    2. Rashid Hameed, President Sahiwal Chamber of Commerce & Ind, Sahiwal.

    3. Rana Waseem Akhtar, Vice Chairman, Pakistan Soup Manufacturing Association, Sahiwal.

    4. Mian Muhammad Latif, President Anjuman Tajraan, Sahiwal.

    5. Muhammad Imran Khan, Vice President Sahiwal Tax Bar .

    6. Shaikh Muhammad Sajjad, Ex President, Sahiwal Tax Bar.

    ISLAMABAD

    1. Syed Tanseer Bukhari, Advocate, Islamabad.

    2. Syed Tauqeer Bukhari, Advocate, Islamabad.

    3. Hafiz Muhammad Idrees, Advocate, Islamabad.

    4. Shahzad Qazi, C.A Islamabad.

    5. Muhammad Mudasser, C.A, Islamabad.

    6. Khalid Iqbal Malik, Representative of Trade Body, Islamabad.

    7. Tariq Sadiq, Representative of Trade Body, Islamabad.

    8. Naeem Siddiqui, Representative of Trade Body, Islamabad.

    9. Mian Muhammad Ramzan, Representative of Trade Body, Islamabad.

    SUKKUR

    1. Asif Iqbal Shekhani, Advocate, Sukkur.

    2. Rewachand Rajpal, Advocate, Sukkur.

    3. Khair Muhammad Shaikh , Representative of Trade Body, Sukkur.

    4. Aamir Ali Khan, Ghouri, Reputable Taxpayer, Sukkur.

    5. Tarique Hussain Soomro, Advocate, Sukkur.

    MULTAN

    1. M. Rashid Qamar, Rtd, District & Session Judge, Multan.

    2. Waqas Khalid. Tax Practitioner. Multan.

    3. Mueed Khawaja. Tax Practitioner. Multan.

    4. Haji Saeed Ahmad, Businessman, Multan.

    5. Kh. Muhammad Usman, Businessman, Multan.

    6. Agha M. Akmal Khan Quzailbash, Advocate, Multan.

    7. Anis Ahmad Sh. Businessman, Multan.

    8. Malik Asrar Ahmad Awan, Businessman, Multan.

    9. Mirza Muhammad Waheed Baig, Advocate, Multan.

    10. Muhammad Younas Ghazi, Tax Practitioner, Multan.

    11. Talat Javed, Tax Practitioner, Multan.

    GUJRANWALA

    1. Abid Hafeez Abid, Advocate High Court, Gujranwala.

    2. Muhammad Asim Anees , Businessman, Gujranwala.

    BAHAWALPUR

    1. Shahid Nadeem Kahloon, Judge, Bahawalpur.

    2. Iqbal Haider, CMA, Bahawalpur.

    3. Ch. Javed Iqbal, Advocate, Bahawalpur.

    4. Saifal Tanveer, Tax Practitioner, Bahawalpur.

    5. Ejaz Nazim, Representative of Bahawalpur Chamber.

    6. Ch. Mehmood Majeed, Reputable Businessman, Bahawalpur.

  • FBR issues rules for ADR in sales tax, federal excise cases

    FBR issues rules for ADR in sales tax, federal excise cases

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified rules to make Alternate Dispute Resolution Committee (ADRC) functional for cases in sales tax and federal excise.

    The FBR issued SROs 488 and 489 (I)/2019 to notify the rules. The ADRC is required to decide a case within 120 days and the decision will have binding effect on both taxpayers and tax officials.

    Under the rules any person interested for resolution of any dispute shall make a written application for alternative dispute resolution to the FBR.

    The FBR, after examination of contents of the application and facts stated therein and on satisfaction that the application may be referred to a Committee for the resolution of the hardship or dispute, shall appoint and notify a Committee, within a period of sixty days from receipt of the application.

    A retired judge not below the rank of District and Sessions Judge, appointed in a manner as aforesaid, shall be Chairperson of the Committee.

    After notification of the Committee, the applicant or the Commissioner or both, as the case may be, shall withdraw appeal pending before any court of law or an appellate authority relating to the hardship or dispute stated in the application.

    The Committee shall commence proceedings after receipt of order of withdrawal of appeal from the FBR.

    The chairperson of the Committee shall be responsible for deciding the procedure to be followed by the Committee which may, inter-alia, include the following, namely:-

    (a) to decide about the place of sitting of the Committee, in consultation with the Chief Commissioner having jurisdiction over the applicant;

    (b) to specify date and time for conducting proceedings by the Committee;

    (c) to supervise the proceedings of the Committee;

    (d) to issue notices by courier or registered post or electronic mail to the applicant;

    (e) to requisition and produce relevant records or witnesses from the Commissioner or other concerned quarters;

    (f) to ensure attendance of the applicant for hearing either in person or through an advocate, representative or a tax consultant;

    (g) to consolidate decision of the Committee and communicate it to the Board, the Commissioner and the applicant; and

    (h) for any other matter covered under these rules.

    The Committee may conduct inquiry, seek expert opinion, direct any officer of Inland Revenue or any other person to conduct an audit and make recommendations to the Committee in respect of dispute or hardship.

    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, to decide the matter.

    The Committee shall decide the dispute within one hundred and twenty days from the date of receipt of order of withdrawal from the FBR.

    Decision of majority members of the Committee shall be construed decision of the Committee which shall be communicated by the Committee to the FBR, the Commissioner having jurisdiction and the applicant.

    The decision of the Committee shall be binding on the Commissioner and the aggrieved person.

    On receipt of the Committee’s decision, the applicant shall make payment of sales tax and other taxes as specified by the Committee in its decision and the Commissioner shall modify order as per decision of the Committee.

  • FBR notifies rules to resolve cases through alternate dispute resolution

    FBR notifies rules to resolve cases through alternate dispute resolution

    KARACHI: Federal Board of Revenue (FBR) has notified rules to implement Alternate Dispute Resolution (ADR) for reduce the number of tax cases and facilitate taxpayers through settlement without going any court of law.

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