The Federal Board of Revenue (FBR) has mandated that state-owned enterprises (SOEs) resolve their tax-related disputes through Alternate Dispute Resolution Committees (ADRCs).
An SRO issued by FBR has amended the Income Tax Rules, 2002, to require SOEs to utilize ADRCs for all tax disputes, regardless of the amount involved.
The ADRC process involves a panel of experts who review the dispute and make a binding decision within 45 days, extendable by 15 days. The decision of the ADRC is binding on the Commissioner of Income Tax if the applicant withdraws any pending appeal and communicates the withdrawal to the Commissioner.
Members of the ADRC will receive a one-time remuneration of Rs. 100,000 for their services.