Seeking stay from court against recovery: 30pc of disputed tax will be deposited with FBR under new Act

ISLAMABAD: Taxpayers have to deposit 30 percent of the determined tax with the Federal Board of Revenue (FBR) in cases where aggrieved person is seeking stay order from the high court against recovery of the disputed amount.

Previously, there was no such condition for the taxpayers to deposit 30 percent of the total disputed tax with the tax department or assessing authority.

According to the Tax Laws (Amendment) Act, 2024, the government has amended Sales Tax Act, Income Tax Ordinance and Federal Excise Act for introducing this provision for the aggrieved taxpayers.

On an application filed in a particular reference and after affording an opportunity of being heard to the Commissioner, the High Court may stay recovery of tax, subject to deposit with the assessing authority of not less than thirty percent of the tax determined by the Appellate Tribunal.

Where recovery of tax has been stayed by the high court by an order, such order shall cease to have effect on the expiration of a period of six months following the day on which it was made unless the reference is decided or such order is withdrawn by the High Court earlier, Tax Laws (Amendment) Act, 2024 added.

Copyright Business Recorder, 2024