Tax Laws Amendment Act, 2024: Changes in Tax Dispute Resolution Process

The Tax Laws (Amendment) Act, 2024 has been introduced in the National Assembly to address the backlog of tax appeals pending before the Appellate Tribunal Inland Revenue (ATIR). The proposed bill aims to streamline the dispute resolution process and expedite the resolution of tax-related cases.

Under the new legislation, appeals involving assessments or refunds exceeding twenty million rupees will now be directly filed before the ATIR, bypassing the Commissioner of Income Tax (Appeals). The appointment process for ATIR members has also been revised, with specific qualifications required for eligibility.

One significant change is the reduction of the stay of demand period from 180 days to 90 days by the ATIR. If the hearing schedule is not adhered to by the taxpayer, the stay will be lifted. However, if the appeal is not decided within the prescribed time, the stay will continue until a final decision is reached.

The proposed bill also mandates the routing of appeals for State-Owned Enterprises through the Alternative Dispute Resolution Committee (ADRC), except in certain circumstances. The ATIR has been given a timeframe of 90 days to decide on appeals, with the possibility of extension upon approval from the Minister of Law and Justice.

In conclusion, the Tax Laws (Amendment) Act, 2024 seeks to enhance the efficiency of the tax dispute resolution system and reduce the backlog of cases before the ATIR. By introducing stricter timelines and revised procedures, the bill aims to promote transparency and expedite the resolution of tax-related disputes.