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BOOSTING REVENUE

NBR focuses on settling tax disputes through ADR

Staff Correspondent
13 Oct 2024 15:18:45 | Update: 13 Oct 2024 23:08:23
NBR focuses on settling tax disputes through ADR

The National Board of Revenue (NBR) is now focusing on settling the long pending tax related cases through Alternative Dispute Resolution (ADR) system to boost the revenue collection.

The tax collecting authority is at unease as the first two months of the ongoing FY25 saw a setback in revenue earnings due to the political unrest, officials said.

According to NBR data, over 27,000 cases have been pending in various courts related to income tax, Vat and duty involving not less than Tk 39,000 crore for a long time.

NBR officials said all commissionerates have been asked to make a list of long pending cases which can be settled through the ADR, and have been directed to utilise the system to clear these cases.

NBR former member (Tax Policy) Syed Aminul Karim told The Business Post, “The NBR chairman recently held a meeting with members of the Tax Wing to reinvigorate the ADR system in line with boosting revenue collection.”

“The government will receive a huge amount of revenue, if the initiative gets success,” said Aminul Karim, also one of the ten facilitators who settle the tax related cases.

“In the meeting, the NBR chairman also asked the officials to take all out efforts to realise the outstanding taxes,” he added.

The NBR introduced ADR on July 1, 2012 to speed up disposal of the revenue-related cases through out-of-court settlement.

ADR is a tool that parties can use to settle disputes with the help of a third party. It is used for disagreeing parties who cannot come to an agreement short of litigation. However, ADR is also increasingly being adopted as a tool to help settle disputes within the court system.

Another senior official of the NBR said, “As per the law, taxpayers have to apply to resolve the tax related disputes. Some taxpayers always try to evade tax and feel encouraged to settle the matter in the courts.

“Those who failed to make any headway in the courts usually come to the ADR system for resolving their disputes.”

An NBR official involved in the ADR said “Due to the reluctant attitude from the businesspeople of the country the system is yet to give its full swing benefit for them and also for the national exchequer.

“The NBR has taken various types of initiatives to vibrant the system, and a former NBR member has been appointed after forming a neutral cell for this system.”

The NBR chairman recently mentioned that the ADR is a system where both parties can avail a win-win situation, adding, “If the taxpayers and tax authority do not come to a consensus then there is nothing to do in this ADR system.

“For that reason many do not want to go to the ADR process.”

In this connection, the NBR chairman pointed out the reluctant attitude of taxpayers and tax collecting authority as they both want to win it all.

“In ADR system both have to compromise or both have to sacrifice, that is the meaning of the ADR,” he said.

The chairman mentioned that those who are involved in the ADR are very much experienced and know the law very well.

“They try to convince both parties to come for a consensus. If the taxpayers and tax collecting authority do not want to go for a long legal battle then ADR is the best option,” the NBR chairman said.

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