Alternative Dispute Resolution (ADR)
Settling a large tax dispute through an FBR committee instead of litigation.
When this applies
A dispute over tax of Rs 50 million or more, a refund, waiver of default surcharge and penalty, or other specific relief — and no criminal proceedings have started.
Time limits, fees and sections
| Item | Rule | Section |
|---|---|---|
| Threshold | Tax liability of Rs 50 million or above | s.134A(1)(a) |
| Committee decision | Within the period set by the law; otherwise the committee is dissolved and the appeal revives | s.134A |
| Binding | You must accept the decision and withdraw litigation | s.134A(2)(b) |
Step-by-step procedure
The section of law behind each step is shown beside it.
- 1Assess suitabilitys.134A(1)
Size and nature of the dispute.
- 2Application to FBRs.134A(1)
Details of the dispute and pending cases.
- 3Proposal and undertakings.134A(2)
An initial offer including tax payment, and an undertaking to accept the decision.
- 4Committee proceedingss.134A
Hearings and negotiation.
- 5Decision and withdrawals.134A
Pay as decided and withdraw pending appeals.
Documents to prepare
- Orders and appeals in dispute
- Computation of the settlement offer
- List of pending litigation
Practical tips
- ADR suits cases where a negotiated outcome is better than years of appeals