FBR constitutes review panel to resolve disputes in audit cases

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The panel, which will review the audit cases selected through computer balloting included representatives from trade bodies. The FBR said that the revenue panel has been constituted to address the issues arising out of audit selection made under Section 214C of the Income Tax Ordinance, 2001, Section 72B of the Sales Tax Act 1990 and Section 42B of the Federal Excise Act 2005.

The revenue body established revenue panel at the federal and regional levels. The trade bodies have been given representation on the cases registered with the Regional Tax Offices (RTOs) or the Large Taxpayers Units (LTUs), the sources said.

The penal has been setup in line with the judgment passed by the Lahore High Court (LHC) early this year in which the revenue body had agreed to conduct computerised balloting to select audit cases and constitute review panel.

The formation of review panel at the regional level consists of four members, including three from the FBR and one from trade bodies.

The FBR said that on receipt of taxpayers’ representation concerning the selection of audit cases, the regional review panel will examine the case in the presence of the taxpayer and his authorised representative. After due deliberation, the FBR will drop the proceedings. “However, if the issue is not resolved, recommendations will be furnished to the board within 15 days of the receipt of representations,” an order issued by the FBR said. The review panel at the headquarters level will examine the recommendations of the regional review panel and then make a decision, it said.

Meanwhile, the business community has termed the review panels similar to the Alternative Dispute Resolution Committee (ADRC), under which the FBR headquarters had never accepted the committee decision and mostly rejected the recommendations.

“The new review panel is just an eyewash for the stakeholders,” Haroon Agar, president of the Karachi Chamber of Commerce and Industry (KCCI), said.

“Majority representation is from the FBR in regional review panel and in this scenario the trade bodies will not be in a position to defend any case,” he said.

He recommended that the review panel should be constituted on equality basis and a FBR member should be replaced with the member from tax bar association.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), however, welcomed the FBR decision, and said that through this the businessmen would raise its voice in the audit cases.

“It gives an opportunity to the taxpayer to contest before a neutral committee,” Shakeel Dhingra, vice president of the FPCCI, said. This would also reduce the litigation issues at different legal fora, he added.
- See more at: http://www.thenews.com.pk/Todays-News-3-162376-FBR-constitutes-review-panel-to-resolve-disputes-in-audit-cases#sthash.ekbuWrf5.dpuf


Courtesy: The News

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