The Federal Board of Revenue (FBR) has released a draft of proposed amendments to the Income Tax Rules 2002 aimed at streamlining the Alternative Dispute Resolution (ADR) mechanism for tax disputes.
Under the proposed regulations, taxpayers seeking alternative resolution must submit an application on a prescribed form along with details of their nominated representative and a panel of three retired judges. For disputes involving tax amounts up to Rs 50 million, the draft proposes a remuneration of Rs 300,000 for the committee chairperson and Rs 150,000 for each member. For disputes exceeding Rs 50 million, the compensation increases to Rs 500,000 for the chairperson and Rs 250,000 per member, alongside traveling and daily allowances equivalent to BPS-22 and BPS-21 officers respectively.
The draft further allows for the consolidation of similar cases into joint proceedings and stipulates a 15-day refund timeline for deposited amounts if a committee is dissolved. Additionally, members facing potential conflicts of interest must notify the FBR within seven days, while being barred from withdrawing after receiving compensation until a final decision is reached. The FBR has invited public feedback and objections to the proposed amendments within a seven-day window.
