September 08, 2021: CODE PAKISTAN in collaboration with the Federal Board of Revenue (FBR) and the National Center for State Courts (NCSC) organized a launch ceremony at Movenpick Hotel in Karachi for their recently published report entitled “ADR for Tax Dispute Resolution in Pakistan.” The launch was attended by executive members of the Karachi Tax Bar Association and the Pakistan Tax Bar Association.
The ADR for Tax Dispute Resolution Report was the product of a series of trainings held with FBR officers in major cities across the country on “Mainstreaming ADR for Equitable Access to Justice in Pakistan” that were intended to raise awareness and build the capacity of tax officers in Pakistan to provide support to citizens in the quick and efficient resolution of tax disputes by using effective methods of Alternative Dispute Resolution (ADR).
The ADR for Tax Dispute Resolution Report narrates the evolution of ADR in Pakistan to highlight the strengths and challenges of provisions contained in past ADR schemes before focusing on a set of recommendations to promote the implementation of effective ADR practices for tax dispute resolution in Pakistan. These recommendations were developed in consultation with provincial FBR officers and cover a list of issues, namely; the composition of the ADR Committee, aspects of the decision-making process, questions regarding the conclusiveness of decisions arrived at through the ADR process, the principles of confidentiality, immunity to exclusionary clauses pertaining to questions of law, payment of disputed demand, matters affecting the stay of disputed tax demand pending ADR, and default surcharges/additional tax.
The President CODE PAKISTAN, Mr. Dilawar Khan initiated the session by introducing the ADR for Tax Dispute Resolution Report and providing a brief summary on the process undertaken for compiling the report. He informed the KTBA and PTBA executive board members that FBR was fully aware of the importance of both Bar Associations in managing tax-related disputes and had stressed on the importance of including them in discussions on the subject moving forward.
The leadership from both Bar Associations was very appreciative of the fact that FBR recognized their importance and potential relevance to the ADR for Tax Dispute Resolution Report. The Patron in Chief PTBA, Mr. Abdul Qadir Memon, highlighted the long-standing efforts of the PTBA in elevating the sufferings of their clients in managing commercial disputes, especially in Karachi. The process, he stated, started back in 2001 with the famous tax dispute case of Agha’s Super Store Karachi with the FBR. The President KTBA, Mr. Zeeshan Merchant, also added a few words to appreciate the findings of the report and acknowledged that all the recommendations were highly relevant. He noted that the KTBA had been working on the same recommendations at various forums but no consolidated document had been made of the effort. He further acknowledged CODE PAKISTAN and FBR for their efforts in codifying the recommendations into one report and assured that KTBA members would take it forward and build on this effort.