‘Tax Laws (Amendment) Act’ has failed to achieve its objectives: PTBA

ISLAMABAD: The objective of the Tax Laws (Amendment) Act, 2024, for streamlining the tax appeal system under tax laws has miserably failed to achieve its objectives, according to the Pakistan Tax Bar Association (PTBA).

In this regard, PTBA has approached Appellate Tribunal Inland Revenue (ATIR) chairman making a request for information under Article 19A of the Constitution of Pakistan.

The PTBA has written to the chairman ATIR with reference to the Tax Laws (Amendment) Act 2024 which was assented on 03 May 2024 through which certain amendments were introduced to revamp the two-tier appeal system, whereby, pecuniary jurisdiction in appeal was introduced in the entire appeal system falling under Income Tax Ordinance, 2001, Sales tax Act, 1990, and Federal Excise Act 2005.

The bar stated the significant amendments were introduced in the tax laws, whereby, jurisdiction of cases where the tax demand does not exceed Rs20 million lies with the commissioner and in all other cases the jurisdiction would fall with the Appellant Tribunal Inland Revenue.

Since this change has been brought about, we have been receiving serious and significant complaints from our members about the operation of the benches, impudent behaviour of the member of benches and non-receipt of the judgments/orders even after the lapsed of stipulated timeline to decide the cases i.e. as per the provision of sub-section (1) of Section 132 of the Income Tax Ordinance, 2001, appeal has to be decided within 90 days of its filing.

The PTBA observed that over six months have passed since enactment of Tax Laws (Amendment) Act, 2024, and it is time to do a reality check if the Tax Laws (Amendment) Act, 2024, has achieved its objectives and if

appeals are being decided within the time provided under the law as referred above.

Accordingly, we (the PTBA) would request you (the chairman ATIR) to kindly provide us the following information, excluding stay applications decided.

Total number of cases pending before Tax Laws (Amendment) Act 2024; total number of cases filed after Tax Laws (Amendment) Act 2024; total number of pending cases filed after the Tax Laws (Amendment) Act 2024, duly distinguishing cases where hearing has been concluded and no order has been passed?; How many cases were adjudicated after the passage of the Tax Laws (Amendment) Act, 2024?

The bar regretted that an honest assessment and replies to the above request for information will clearly show that the objective of the Tax Laws (Amendment) Act, 2024, for streamlining the appeal system under tax laws has miserably failed to achieve its objectives.

Taxpayers continue to suffer. Getting justice has become difficult and expensive.

There are serious and significant reservations from our membership about the capacity/working of Appellate Tribunal Inland Revenue.

PTBA remains committed to assist in strengthening the judicial institutions so that the taxpayers get fair hearing/trial and due justice. The request for information is being made pursuant to Article 19A of the Constitution.