Appellate Tribunal Inland Revenue Has Become Dysfunctional: Pakistan Tax Bar Association

The first stage of appeal for the taxpayers i.e. Appellate Tribunal Inland Revenue (ATIR) has become dysfunctional, depriving taxpayers of their basic right of appeal against the Federal Board of Revenue (FBR). According to a communication of the Pakistan Tax Bar Association (PTBA) to Minister of Law and Justice, the bar wrote to the Minister regarding the complaints it was receiving regularly from its Member Bars and their members in respect of ATIR regarding the case proceedings, the conduct of the benches, non-acceptance of binding orders, unethical practices, and the order passed without any reference of the documentary evidence presented and submission made during the course of the hearing. The PTBA stated that the observations/complaints the bar is receiving indicate a troubling pattern of behavior that undermines the integrity of the tribunal and erodes public trust which comprise the tribunal’s role in ensuring fair and impartial adjudication. Tax Tribunal has nearly become dysfunctional, they start proceedings after 10:30 and in some cases after 12 noon and at times the member(s) just do not show up. Orders are either not received for a long time or non-Speaking orders are passed or orders passed based on consideration other than merit, PTBA said. After the Tax Laws Amendment Act, 2024 the Tribunal has become the first Appellate Forum for certain cases and due to the circumstances as mentioned, taxpayers have nearly lost trust in the Tribunals and the trust deficit with the government is increasing every other day which will jeopardize the entire tax revenue collection and tax system. The PTBA urged the Minister of Law and Justice to intervene and form an oversight committee to look into this matter and also request to expedite the new member’s appointment process on war footing, any delay in this regard will further deteriorate the Appellate forum and the taxpayer will deprive with their fundamental right of the fair trial and natural justice, PTBA added.