The FBR has proposed amendments to Rule 231C of the Income Tax Rules, 2002 governing the Alternative Dispute Resolution mechanism. Under the proposed procedure, a taxpayer seeking ADR would be required to submit an application to the FBR on a prescribed form together with complete particulars of the taxpayer’s nominated representative.
A significant proposed requirement is that the applicant would also suggest the names of three retired judges for consideration for appointment to the ADR Committee. This would introduce a more structured procedure at the very beginning of the ADR process and require taxpayers to address committee composition as part of their application.
The proposed amendment is relevant because ADR offers taxpayers an alternative mechanism for resolving tax disputes outside the normal appellate hierarchy. If finalized, taxpayers considering ADR would need to pay greater attention to the procedural completeness of their applications, including the nomination of their representative and the proposed members of the ADR Committee.