State-owned enterprises must now seek resolution for tax disputes through alternate dispute resolution committees (ADRCs) of the Federal Board of Revenue (FBR), regardless of the tax liability involved. This new requirement is outlined in the recent amendment made to the Income Tax Rules, 2002 (plate_number_1/2024) issued by the FBR on Friday.
According to the new rule, state-owned enterprises must approach the Board for the appointment of a committee to address their tax disputes. Any person or entity seeking dispute resolution, including state-owned enterprises, must submit a written application to the Board in a specified format.
The ADRC panel will consist of senior officers of the Inland Revenue Service, chartered accountants, cost and management accountants, experienced tax attorneys, and reputable business people. The committee will have the authority to gather information, seek expert opinions, and make inquiries as necessary to resolve disputes within a specified time frame.
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The decision made by the committee will be binding if the applicant withdraws any appeal pending before a court of law or any appellate authority. The applicant must communicate the withdrawal to the commissioner within a specific timeframe. Upon receiving the committee’s decision, the applicant must make the necessary tax payments based on the committee’s decision.
Members of the committee will receive a one-time remuneration of one hundred thousand rupees each for their services, which the Board will pay from its budget allocation within a specific timeframe.
