The Federal Board of Revenue (FBR) on Friday amended the rules governing the Alternative Dispute Resolution (ADR) mechanism for income tax disputes.
The Federal Board of Revenue has issued a notification vide SRO 1827(I)/2026 amending Rule 231C of the Income Tax Rules 2002.
Under the revised Rule 231C, the FBR has specified the fees payable to committee chairpersons and members based on the amount involved in a tax dispute, while also establishing requirements for handling conflicts of interest and returning advance payments.
According to the new FBR notification, an aggrieved taxpayer seeking resolution of an income tax dispute must submit a written application to the Board to initiate the process.
The application must include the taxpayer representative’s name, Computerised National Identity Card (CNIC) number, phone number, residential or business address, and email address.
The amended procedure also requires the taxpayer’s representative to propose the names of three retired judges for consideration for the dispute resolution committee.
The revised rules establish separate remuneration rates for committee chairpersons and members, depending on the amount involved in the tax dispute.
For disputes involving amounts of up to Rs50 million, the committee chairperson will receive Rs300,000, while each committee member will be paid Rs150,000.
For disputes exceeding Rs50 million, the chairperson’s remuneration has been fixed at Rs500,000, while each member will receive Rs250,000.
The notification also provides for committee members to receive travel expenses and daily allowances equivalent to those admissible to government officers in Grade 21 and Grade 22.
The amended rules specify that committee members will not be entitled to remuneration if the committee fails to function or is dissolved.
In such circumstances, any advance payments received by the members must be returned within 15 days.
The FBR has also introduced a requirement for committee members to disclose any conflict of interest that may arise during the dispute resolution process.
