Enhancing Tax Dispute Resolution: A Proposal for Amendments to the Income Tax Ordinance 2001 for Strengthening Alternative Dispute Resolution Mechanisms

Abstract

This research paper proposes for amending the Income Tax Ordinance 2001 to enhance the effectiveness and efficiency of Alternative Dispute Resolution (ADR) mechanisms in resolving tax disputes in Pakistan. The proposal addresses challenges faced in the current ADR framework, particularly related to the accreditation of retired judges and delays in the nomination process. Key recommendations include recognizing established ADR centers as authorized entities for nominating retired judges and specifying the role of retired High Court judges in chairing ADR committees. Proposed amendments to Section 134A of the Income Tax Ordinance 2001 are outlined, along with the benefits and justifications for these amendments. The paper concludes with a call for swift implementation of the proposed amendments to improve taxpayer confidence and strengthen the integrity of the tax administration system.