ISLAMABAD: The Tax Reforms Commission (TRC) has recommended that selection of members of the Inland Revenue (IR) and Customs Tribunals should be made through the Federal Public Service Commission (FPSC) and high courts.
Moreover, the appellate fora should be made independently from the formal / informal influence of the FBR. The tax adjudication system must rest on fundamentals of independence, insulation and isolation from tax collection.
A well-placed source at the FBR told this scribe that TRC had also recommended that prosecution should be separated from adjudication with gradual shift towards independence by transferring the adjudication system under the command and control of independent office or Ministry of Law or most preferable under the respective high courts in conformity with section 10A of the Constitution.
The source further said that in transitional phase, transfer of tax officials to adjudication system should be based on option exercised by tax officials and there should be a bar on repatriation to the administrative function. In long term, there should be a separate process in place for appointments and career management in tax adjudication system.
Moreover, the source added that “TRC recommends that Accountant member of the Appellant Tribunal IR and the Technical members of Custom Tribunal should be appointed through open competition by advertising the position through FPSC so that the chartered accountants and ICMA can also compete for these positions.”
The automatic filling of these positions by the officers of the FBR should be discontinued immediately. This step will go a long way in restoring the confidence of the taxpayers.
TRC recommends that appointment of an officer of IR in BS-20 or above who is law graduate as Judicial member should be immediately withdrawn.
TRC is of the view of that that Appellate Tribunal should be considered as the first level of appeal and then as a remedy tax courts / special benches should be established within high courts.
