Islamabad:
A committee formed by the Supreme Court to resolve fiscal cases has recommended establishing a solid alternative dispute resolution mechanism within the Federal Income Board and all provincial income departments.
The Committee, which includes the registrar of the Supreme Court and experts in legal and fiscal matters, has also suggested that ADR decisions are binding for income authorities to avoid unnecessary litigation.
The Government has expressed concern about the large number of cases related to pending income in the courts, which involve billions of rupees. This not only deprives the government of critical income, but also adds to the accumulation of the Judiciary.
To mitigate the situation, the president of the Supreme Court Yahya Afridi presided over a meeting on November 7, 2024. It was revealed that 108,366 cases of these cases were pending in the higher courts of the country, which involved RS4,457 billion.
In addition, some 6,000 cases of income were pending in the Supreme Court, while 2,000 cases remained unsolved in several courts and courts, where suspension orders had stagnated in potential recoveries worth bills of rupees.
The objective of the November meeting, which also attended officials of the Ministry of Finance and the FBR, was to develop a comprehensive strategy to accelerate the resolution of cases related to income in judicial forums.
The meeting formed a committee, with the tax expert Imtiaz Ahmed Khan as its coordinator. It included the registrar of the Supreme Court Salem Khan, As As As As Zulfiqar, Sher Shah Khan, Ishtiaq Ahmed Khan, General Director, Law and others of FBR.
The Committee had the task of reviewing the matter, identifying problems and making recommendations. The committee also went to suggest adequate solutions in the context of the situation in the country.
To confuse this mandate, the Committee consulted the key stakeholders, including the FBR, the Supreme Court’s Bar Association, the Ponjab’s lawyers association, the Federation of Chambers of Commerce and Industry of Pakistan, and other commercial and industrial representatives.
Based on the contribution of interested parties, the Committee recommended establishing a special ADR panel within the FBR to reduce litigation through mediation, conciliation and negotiation.
The committee also suggested that the FBR should not have the authority to appeal ADR decisions in any court. He also proposed to establish an ADR unit within the Supreme Court to monitor ADR systems in the FBR and other state institutions.
To reduce the burden of the Judiciary, the Committee recommended the creation of special banks for income cases in the Supreme Court and the Superior Courts, with the judges instructed to decide the cases quickly.
The committee said that a lot of time is lost in legal procedures because cases of a similar nature are heard in different banks. Therefore, he said, all these cases must consolidate and present themselves before a single bank for uniform decisions.
It is indicated in the recommendations that income officials present routinely against judicial orders, although they have a weak legal position in that matter for fear of the National Office of Responsibility (NAB).
This culture of unnecessary appeal is exerting unnecessary pressure on the judicial system and the increase in legal expenses for both the State and taxpayers, the committee said in its recommendations.
To end this trend, continues, the FBR and provincial income authorities must have the order not to present unnecessary appeals, and disciplinary measures against interested officers must be taken, considering this violation as a lack of performance.
He also suggested rationalizing the appointment of officers in the relevant appeal courts of the FBR and introduction of key performance indicators to evaluate the performance of these officers.
The Committee also made recommendations on the issuance of stay orders in tax matters. He said that judicial forums should get rid of cases within the legally stipulated time.
The president of the president of Pakistan has been requested to consider increasing the number of judges taking into account the complaints of the associations of lawyers and taxpayers, improving case management, rationalizing judicial procedures.
