State-owned businesses that have tax issues involving any amount of tax liabilities are required to file them with the Federal Board of Revenue’s (FBR) alternate dispute resolution committees (ADRCs).
To update the Income Tax Rules, 2002, the FBR released SRO 1377(I)/2024 on Friday.
The new regulations said that in the event of a state-owned firm, the new rule would apply to any disagreement regardless of the amount of tax liability and that the state-owned enterprise must apply to the Board for the establishment of a committee if it feels wronged.
Any individual or group of individuals, including state-owned enterprises, wishing to resolve a dispute must submit a written application to the Board using the form provided in Part I of the Schedule to this regulation in order to seek alternate dispute resolution.
In compliance with the eligibility requirements outlined in Part II of the Schedule to this rule, the Board will notify a panel made up of reputable businessmen, advocates, cost and management accountants, chartered accountants, and retired Inland Revenue Service officers retired in BS-21 and above.
The FBR further said that the committee will get secretariat help from the specified member.
The committee will decide by majority within 45 days of its appointment, with the possibility of an additional 15 days if necessary, and will document its reasoning in writing.
After determining the issue, the committee may seek additional information, data, expert opinion, or make or order the making of such inquiries or audits.
When the applicant, satisfied with the committee’s decision, withdraws their appeal that is still pending before a court of law or other appellate authority using the form provided in Part III of the Schedule to this rule and notifies the commissioner of the withdrawal order, the commissioner will be bound by the committee’s decision.
