Recently, the Federal Board of Revenue (FBR) has issued a guideline on the mechanism of ADR. The FBR has motivated taxpayers to resolve their issues through the Alternate Dispute Resolution (ADR) mechanism, which will help taxpayers from unnecessary litigation. This procedure will save taxpayers not only from the unnecessary litigation but help FBR to get legitimate revenue in a friendly measure thus maximising the environment of trust between tax collectors and the taxpayer.

The guideline notes that ADR is a system that operates side by side with the existing appeals system but with simpler procedures and fewer technicalities. The taxpayer could therefore refer contentious issues for consideration by independent experts and arrive at an out of court settlement with the tax administration on the basis of the expert recommendations.

This guideline explains the provisions of the Income Tax, VAT, Customs and Federal Union Taxation Laws in the context of the Alternative Dispute Resolution (ADR) mechanism in a simple and general language. It is largely intended for those who have no professional knowledge/advice in dealing with their tax affairs.

In addition, the registration form for ADR is linked to the manual.