In the backdrop of the federal cabinet’s concerns over pendency of matters wherein billions of rupees of the state exchequer were involved, Islamabad High Court Chief Justice Athar Minallah has summoned a meeting of top government functionaries on February 22.
IHC Registrar Farhan Aziz Khawaja has written a letter to Federal Information Minister Fawad Chaudhry, Attorney General for Pakistan Khalid Jawed Khan, Federal Board of Revenue (FBR) chairman, Competition Commission of Pakistan chairman and Oil and Gas Regulatory Authority chairman, inviting them to attend the meeting. The IHC registrar’s letter asked the officials concerned to inform the meeting about the latest position of the pending cases in IHC.
It has been learnt that the AGP office has also started working with FBR officials on the issue.
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A senior government official told The Express Tribune that the FBR was mainly responsible for the delay in deciding those cases.
He added that more than a year ago, the government could not appoint members of the tax tribunal. He further said the FBR also paid Rs25,000 to a private lawyer for pleading the case.
Hafiz Ahsaan Ahmad Khokhar, who is a well-reputed tax lawyer and has served as a chairman of the Customs, Federal Excise and Sales Tax Appellate Tribunal and adviser to the Federal Tax Ombudsman, said the FBR had a large number of cases – in fact thousands -- pending before the Supreme Court, high courts, tribunals, appeals inland revenue commissioner and collector appeals (customs).
“This has become a major challenge now not only for the FBR, but also for courts and government. This situation requires immediate and urgent strategy by coordinating with all stakeholders with a positive way forward,” he added.
He said immense workload and the quality of decision-making sometimes professionally became difficult and big challenge for the FBR because it had to rely upon the input from the field tax formations.
Khokhar said there were capacity issues as well within the FBR and tax offices to manage litigation backlog needed to be improved on a priority basis.
“This is necessary to address the issue of backlog and proper representation before superior courts and before adjudicating tax forums.”
The senior lawyer said a large numbers of cases were pending because of lack of knowledge about new judgments of the superior courts on identical tax propositions.
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“Another aspect of this backlog and waste of time and energy is frivolous litigations by either side including taxpayers.”
Khokhar suggested that there should be effective coordination among legal representatives and field formations at all stages of hearings and timely disposal of cases as prescribed by tax laws and to further decide through clubbing of similar tax matters and legal propositions before the Supreme Court and high courts.
He said another reason of the weak legal management of tax cases was that there was no reward scheme for FBR officials to encourage them for making successful income amended assessments that come out from the courts in favour of the bureau.
Khokhar proposed that there should be mandatory timeline to decide tax cases by every adjudicating forum under tax law and for Supreme Court and high courts. He also said it was essential to set up a Special Litigation Management Resource Centre headed by an appropriate expert on tax litigation matters at the FBR headquarters having automated linkages with field formations. It should apply automated legal management system (ALMS) application that ensured online status of automated litigation management system of all pending litigation cases involving revenue impact at all appellate fora including Supreme Court and high courts.
He highlighted that special measures be adopted against stay orders by superior courts as per Article 199 of Constitution where statutory period of six months had elapsed.
The senior lawyer said the FBR should make a strong legal strategy to highlight revenue yielding cases and sectors to the field formations and remove impediments for its early disposal to achieve revenue targets.
Khokhar also highlighted the role of alternative dispute resolutions (ADR). He stressed upon the need to streamline the tasks of ADR Committees and its monitoring as suggested in all tax laws (Customs, Federal Excise, Sales tax, and Income tax laws).
He asked that a reward system for FBR officers and officials be drafted and be implemented whose amended assessment orders stands the test of appeals, stage wise and before superior courts.
Khokhar said as a new jurisdiction has been vested with the FBR for benami and anti-money laundering laws, thus special strategies were needed and should be implemented for investigation and courts litigation. Otherwise, he added, the target of these laws would never be achieved.
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