Finance Bill 2018: ADRCs decisions to be binding on FBR, aggrieved person

In order to facilitate resolution of disputes between taxpayers and tax department, the decisions of the Alternative Dispute Resolution Committees (ADRCs) would be binding on the Federal Board of Revenue (FBR) and the aggrieved person. According to the Finance Bill 2018 unveiled here Friday, the new provision relating to the Alternative Dispute Resolution has been introduced in the federal tax laws.
An aggrieved person, who has filed an appeal which is pending before an Appellate Authority, may apply to the Board for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application, except where prosecution proceedings have been initiated or where interpretation of question of law having effect on identical other cases is involved.
The Board after examination of the application of an aggrieved person shall, within sixty days of receipt of such application in the Board, appoint a committee consisting of an officer of Inland Revenue not below the rank of commissioner and two persons from a panel comprising of retired high court justices, retired district and session judges, chartered or cost accountants, advocates, income tax practitioners or reputable taxpayers for the resolution of the hardship or dispute, the Finance Bill said.
The aggrieved person and the Board, as the case may be, shall withdraw the appeal pending before the appellate authority. The committee shall not commence the proceeding unless the order of withdrawal from the appellate authority is communicated to the Board. Provided that if the order of withdrawal is not communicated within 75 days of the appointment of the committee, the said committee shall be dissolved and this section shall not apply.
The committee appointed shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of the Inland Revenue or any other person to conduct an audit and shall decide the dispute by majority, within 120 days of its appointment. Provided that in computing the aforesaid period of 120 days, the period, if any, for communicating the order of withdrawal shall be excluded.
The decision of the committee made under sub-section (5) shall be binding on the Board and the aggrieved person. If the committee fails to decide within the period of 120 days, the Board shall dissolve the committee by an order in writing and the matter shall be decided by the appellate authority, which issued the order of withdrawal and the appeal shall be treated to be pending before such appellate authority as if the appeal had never been withdrawn.
The Board shall communicate the order of dissolution to the appellate authority and the commissioner. The aggrieved person may make the payment of sales tax and other taxes as decided by the committee and all decisions, orders and judgments made or passed shall stand modified to that extent and all proceedings under this Act or the rules made thereunder by any authority shall abate. The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section, the Finance Bill added.