Rules to facilitate taxpayers, tax collectors

New ADRC rules to facilitate taxpayers, tax collectors

KARACHI: Rawalpindi Islamabad Tax Bar Association (RITBA) has lauded the government for improving rules for Alternate Dispute Resolution Committees (ADRCs) which will facilitate taxpayers as well as the tax collectors. The move to empower ADRCs will provide relief to taxpayers and reduce litigation thereby lessening the burden on the courts and the tax administration, it said. The out-of-court settlement of tax disputes has become an important part of the tax system around the world while it was not effective in Pakistan until recently resulting in many problems, said Syed Tauqeer Bukhari, President of RITBA. He said that revenue of over Rs1.276 trillion is stuck at different stages of litigation in 31,098 cases which is part of the numerous challenges the tax system is facing. Syed Tauqeer Bukhari said that it is very important to understand the reasons for such a high number of cases against the FBR so that tax collection can be improved which is dismally low. Litigation should not be the first option but should be used as last option by the taxpayer for which ADRC has been improved to mitigate litigation, he added. Bukhari informed that now any taxpayer can opt to resolve his issue through ADRC by submitting an application to the FBR which will be bound to refer the application to ADRC within 60 days while the committee will have to decide the dispute within 120 days. Unlike the past practice, now it has been made mandatory that the decision of the committee shall be binding on the aggrieved person and the FBR.
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