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On May 6, 2024, the government put into effect the Tax Laws (Amendment) Act, aiming to streamline the resolution of appeals before the Commissioner Inland Revenue (Appeals) and the Appellate Tribunal Inland Revenue (ATIR).
This Act brings modifications to the Income Tax Ordinance 2001, Sales Tax Act 1990, and Federal Excise Act 2005, delineating new criteria for appeals.
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According to the amended Sales Tax Act, appeals to the Commissioner (Appeals) are permissible if the assessed tax value or refund doesn’t surpass Rs. 10 million.
However, appeals to the Appellate Tribunal Inland Revenue are warranted when the assessed tax value or refund exceeds Rs. 10 million.
In a noteworthy amendment to the Income Tax Ordinance 2001, the Act establishes that income tax appeals to the Commissioner (Appeals) are acceptable if the assessed tax value or refund is under Rs. 20 million. Conversely, appeals to the Appellate Tribunal Inland Revenue are appropriate if the assessed tax value or refund exceeds Rs. 20 million.
Regarding federal excise appeals, the pecuniary jurisdiction indicates that appeals to the Commissioner (Appeals) are valid if the assessed tax value or refund is less than Rs. 5 million.
On the other hand, appeals to the Appellate Tribunal Inland Revenue are justified if the assessed tax value or refund exceeds Rs. 5 million, as per the Act’s provisions.