The Federal Board of Revenue (FBR) has issued a draft proposing further amendments to the Income Tax Rules 2002. The proposed changes also include amendments to the rules related to the procedure for alternative dispute resolution.

According to Express News, according to the proposed rules issued by the FBR, an application for alternative resolution of tax disputes must be submitted to the FBR on the prescribed form.

The application must also include the details of the taxpayer’s nominated representative and the names of three retired judges for alternative dispute resolution. The draft proposes a compensation of Rs 300,000 for the chairperson of the committee in the case of disputed taxes up to Rs 50 million and Rs 150,000 for each member.

In addition, it is proposed to provide compensation of Rs 500,000 to the chairperson and Rs 250,000 to each member in disputes exceeding Rs 50 million. It also includes a proposal to provide the chairperson and members with travel and daily allowances equal to those of BPS 22 and BPS 21 officers.

Under the proposed amendments, several cases of similar nature can be consolidated and processed jointly. In case of dissolution of the committee, it has been proposed to return the amount already collected or paid within 15 days.

According to the draft, if any member or chairperson of the committee faces a conflict of interest, he or she must inform the FBR within seven days. After the compensation is released or paid, the member or chairperson will not be able to detach himself or herself from the proceedings until the final decision is taken.

The FBR has invited objections and suggestions on the proposed amendments, which can be submitted within seven days.