Federal Board of Revenue (FBR) is making all out efforts to restore taxpayer’s trust by taking several steps including resolution of tax disputes through constitution of Alternative Dispute Resolution Committees (ADRCs). Responding to the applicants’ grievances on fast track basis, IR-Operations Wing, FBR, during the period July, 2020 to Feb, 2021, has constituted eighteen (18) Committees, under the sales tax, federal excise & income tax heads. Out of the said ADRCs, fourteen (14) Committees have so far successfully decided the disputes referred to the Board.
FBR has stated that the said mechanism, as part of out of court settlement and revenue mobilization, has been mobilized to enable taxpayers to get their disputes settled in lesser time and without incurring litigation cost.
While explaining, FBR has stated that by virtue of major facilitative change introduced through Finance Act-2020, an applicant, in order to avail ADRC, is not required to withdraw his case pending before any appellate forum. To make the process more transparent and trust-worthy, ADRC is composed of three (03) members including Chief Commissioner-IR from the department’s side and notable Chartered Accountants/ Lawyers & Businessmen from the private sector. The committee is also empowered to stay the process of recovery in case of hardship. Taxpayer’s application has to be finalized by the Committee within a short period of 120 days which in itself is a big relief considering the usual time taken in various appellate fora before a case attains finality.