FBR moves to prevent undue delay in tax disputes

Seeks input from stakeholders on draft for amendments to Income Tax Rules 2002

ISLAMABAD:

The Federal Board of Revenue (FBR) has decided to make it mandatory to send copies of the references filed in the courts to respondents in order to prevent undue delay in tax dispute cases, for which significant amendments are being made in the Income Tax Rules 2002.

According to a document available with The Express Tribune, the FBR has drafted amendments to the Income Tax Rules 2002, asking the concerned stakeholders to send their views and suggestions within 15 days.

When contacted, the FBR officials said that the decision was being taken in the light of instructions issued by the Lahore High Court in a tax case.

They said that the FBR Office did not send copies of the references filed in the courts by its field formations to the respondent and when the case comes up for hearing in the esteemed court, the lawyer of the opposing party shows ignorance about the reference, asking for time to prepare and study the case thus the first hearing is given without any further action.

The proposed amendment to the rules state that in the future tax cases, if a reference is filed against a taxpayer in any court by the FBR or any of its field formation officers, a copy of the relevant must be sent to the party.

Similarly, if a taxpayer files a reference in any court or legal forum relating to the FBR or any field office, he must also send a copy of this reference to the party concerned so that when the case is fixed for hearing in the court, the opposing party comes prepared and regular hearing of the case could start from the first hearing.

The FBR officials said that the draft amendment would be finalised and notified after taking into consideration the views of the stakeholders.