01/05/2024
THE TAX LAWS (AMENDMENT) BILL 2024
Following are the important amendments proposed in the Sales Tax Act 1990 and Income Tax Ordinance 2001:
PROPOSED AMENDMENTS IN SALES TAX ACT 1990:
1. Appeal before Commissioner (Appeals) shall lie when the assessment of tax or refund involved does not exceed Rs. 10 million (1 Crore Rupees.), otherwise shall lie before the ATIR.
2. ATIR shall decide such transfered pending appeals in 180 days under section 132 of ITO 2001.
3. The limitation period to file an appeal before ATIR has been reduced from 60 days to 30 days.
4. Consequentially, only the "persons" will be filing the appeals before the ATIR.
5. Section 46(2A) is omitted being redundant.
6. Reference to High Court: Limitation to file the reference shall be 30 days from the receipt of order of ATIR, not 90 days.
7. Only the Commissioner can file the reference application on behalf of the department.
8. Along with reference application, complete record of the ATIR shall also be submitted. Rest the provision of section 133 of the Income Tax Ordinance shall apply mutatis mutandis to the reference under the Sales Tax Act. (Note: Section 133 of the ITO 2001 is also significantly changed through this bill).
9. Under section 47A, the threshold for ADR is reduced from 100 million to 50 million. Whereas there is no threshold for SOEs. Rest the provision of section 134A of the Income Tax Ordinance shall apply mutatis mutandis to the application under the Sales Tax Act. (Note: Section 134A of the ITO 2001 is also mainly changed in this bill).
10. Under section 48, no recovery of tax shall be made from taxpayer if he has filed first appeal before ATIR and appeal is not decided by ATIR, subject to payment of 10% of the tax amount. (Note: the legislature was also required to add expression "or ATIR, as the case may be" in the same proviso).
PROPOSED AMENDMENTS IN INCOME TAX ORDINANCE 2001:
1. Under section 122A, now the Commissioner can suomoto revise the order of any officer of the Inland revenue other than order of the commissioner (Appeals) if the value of the tax or refund does not exceed 20 million Rupees (2 Crore rupees).
2. New section 126A is inserted. Appeal before Commissioner (Appeals) shall lie if the value of assessment of tax or refund of tax does not execeed Twenty Million Rupees (2 Crore Rupees), otherwise it shall lie before the ATIR.
3. All the cases transfered from Commissioner (Appeals) to ATIR shall be decided in 180 days.
4. Under section 130, existing members of ATIR shall continue to hold their offices till the completion of their term unless removed earlier by the Federal Government on recommendation of performance review committee or attain age of supperannuation or on the grounds of inefficiency or misconduct under rules prescribed by the Federal Government under subsection 2.
5. Federal Government shall appoint new member, not the Prime Minister.
6. The Federal Government shall determine such numbers of members on such term and consition with such procedure as prescribed by rules.
7. For new appointments, no former Judge of the High Court or former District judge can be apointed as Member of ATIR unless he possesses 15 years of experience as an Advocate of High Court. Or possesses 10 years experience as CA or is a OIR in BS-21 or abive or OIR in BS-20 with servuce of 3 years or more in such grade.
8. No cost and management accountant within meaning of Cost and Management Accountant Act 1966 can be apointed as member ATIR.
9. Member with OIR experience/service shall not be apointed as Chairman ATIR.
10. Chairman shall hold office for 3 years unless term extented by Federal Government.
11. Member including Chairman shall cease to hold office at age of 62 years except those with OIR service shall cease to hold till age of superannuation under law regulating their service.
12. Under section 131, appeal before ATIR shall lie within 30 days from receipt of order.
13. Prescribed fee increased from Rs. 5000 to Rs. 20,000 in case of a company and Rs. 5000 otherwise.
14. Period of stay from recovering the tax is reduced from 180 days to 90 days.
15. If the taxpayer does not attend appeal hearing then stay order shall cease to have effect and Commissioner shall be entitled to recover the same tax.
16. If appeal is not decided by the ATIR in 90 days as required under the law then stay shall have effect till the final order of appeal.
17. Under secrion 132, ATIR shall decide the appeal in 90 days.
18. If appeal is not decided in 90 days, ATIR shall seek condonation from Minister of Law and Justice which shall not extend beyond 90 days.
19. Ay first hearing, ATIR shall give the option of ADR under section 134A to the taxpayer and upon taxpayer's decline fix next date for hearing and decision of the appeal in consultation with taxpayer and the Commissioner.
20. ATIR shall strictly adhere to the above said date and no adjourment shall be granted except for compelling reasons and upon mandatory payment cost which shall not be less than Rs.50,000.
21. ATIR shall not remand the matter to Commissioner (Appeals) rather to the Commissioner only.
22. Under section 133, Reference to the High Court shall be filed within 30 days of communication of the ATIR order along with statement of the case stating any question of law or mixed question of law and fact arising out of the order.
23. Applicant shall also file the complete record of ATIR within 15 days of filing of the application.
24. References shall be heard by Special Bench of the High Court of not less than 2 Judges of High Court.
25. Special Bench shall decide the case in 6 months.
26. An application has to be filed for grant of stay and after hearing the Commissioner, a stay order may be granted subject to payment of 30% of tax determined by ATIR.
27. Fee for filing of the reference is Rs. 50,000/- for everyone.
28. Reference by the Commissioner shall also accompany the written authorisation of the relevant Chief Commissioner.
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