The Federal Board of Revenue (FBR) has extended the deadline to September 16 for transferring pending cases involving substantial tax amounts to the Appellate Tribunal Inland Revenue (ATIR). This measure aims to expedite the resolution of tax disputes.
Tax disputes pending before the Commissioner Inland Revenue-Appeal (CIRA) involving over Rs20 million in income tax or refunds, over Rs10 million in sales tax, and over Rs5 million in federal excise duty will be moved to the newly established ATIR. The CIRA will handle cases below these thresholds.
This new appeal system was introduced through the Tax Laws (Amendment) Act 2024, separate from the Finance Bill 2024.
New appeals will follow the same thresholds to determine whether they go to ATIR or CIRA. Decisions from these bodies can be contested in high courts.
According to the new amendment, the commissioner will not recover any tax for 30 days from the communication of a CIRA or ATIR order. This change addresses the issue of tax collection starting before the aggrieved party receives a copy of the decision.
The ATIR is required to decide appeals within 90 days of filing, except for those pending at the start of the Tax Laws (Amendment) Act 2024, which must be resolved within 180 days. If a decision is not reached within these time frames, the minister of law and justice must issue a condonation not exceeding 90 days.
The ATIR has reduced the maximum stay term from 180 days to 90 days. However, if the tribunal does not consider the appeal within the statutory time limit, the stay will remain in place until a decision is made.
The federal government now has the authority to designate the chairman and members of the ATIR, a power previously held by the prime minister. The eligibility criteria for ATIR members have been amended to remove the distinction between judicial and accountant members.
The high court can issue a stay of tax collection based on a specific reference, conditional on the deposit of at least 30% of the ATIR-determined amount. This stay order will expire in six months unless resolved or withdrawn by the court.
State-owned enterprises must first apply to the board to form a committee to resolve disputes before appealing to the ATIR, High Court, or Supreme Court. For non-SOE taxpayers, ADRC provisions now include tax disputes of Rs50 million or more, with decisions binding on taxpayers.
