FBR will now have 45 days to decide tax disputes
Business
The move aims at streamlining and making the system efficient
ISLAMABAD (Web Desk) – In an attempt to enhance revenue collection and facilitate the taxpayers, a 45-day limit has been fixed for the Federal Board of Revenue (FBR) to resolve tax disputes as the government modified the alternative dispute resolution process. Earlier, the decision could take 120 days.
A circular issued on Monday says a committee would be formed by the FBR within 15 days – instead pervious period of 45 days – of receiving any application for dispute resolution, which would have to decide the matter in 45 days.
However, the period may be extended by 15 days but only after giving the [solid or unavoidable] reasons in written form.
Another change introduced in the alternative dispute resolution mechanism is that the registered taxpayers now can propose their terms, including tax payment.
Moreover, the third member of the committee, who used to be nominated through consensus, would be a retired judge not below the rank of a high court judge. The Law and Justice Division will nominate the chairperson from a panel.
At the same time, the previous requirement of withdrawing the pending appeals before the relevant appellate fora has been binned. However, the recovery of tax payable will be deemed stayed until the committee makes a decision or is dissolved.
