FBR Proposes New Rules For Tax Dispute Resolution

The Federal Board of Revenue (FBR) has proposed amendments to the Income Tax Rules, 2002, aimed at changing the procedure for resolving tax disputes through Alternative Dispute Resolution (ADR).

In a draft notification, the FBR has suggested changes to Rule 231C that would require taxpayers wishing to settle a dispute through ADR to submit an application to the tax authority using a prescribed form.

Applicants would also be required to provide complete information about the representative they have nominated to participate in the dispute resolution process.

Under the proposed framework, taxpayers would additionally have to recommend the names of three retired judges for consideration as members of the Alternative Dispute Resolution Committee.

The proposed changes have not yet taken effect. They remain in draft form and have been put forward by the FBR for consideration as part of the proposed amendments to the Income Tax Rules, 2002.