Sources on Tuesday said that the Central Board of Revenue (CBR) has decided to handle the situation with the help of Alternate Dispute Resolution (ADR) mechanism or out of court settlement.
Recently, CBR Chairman Abdullah Yousuf expressed serious concern over litigation with the large taxpaying units, saying that of 144 clients in Lahore, more than 400 cases are in litigation, which shows that there is something seriously wrong at the LTU.
He said that switching on to the ADR mechanism for the settlement of these cases is urgently needed.
The CBR chairman has directed the Collector, LTU, Lahore, to submit a comprehensive report about the details of litigation. Out of 144 registered people, how many taxpayers'' cases are pending in the higher courts? He questioned.
The names of 201 multinational companies and business establishments were notified whose income tax and sales tax were assessed by the LTU, Lahore from September 1, 2004. All leading banks, investment banks, textile mills, oil and gas companies, cement manufacturers, beverage industry, fertiliser companies, hotels, sugar mills, pharmaceutical companies and paper/paper board companies were operating under the jurisdiction of LTU, Lahore.
When approached, a senior CBR official said that there is a possibility that 400 cases are old appeals and references filed by the companies and business establishments in the past. Obviously, fresh cases are also filed against the Sales Tax Department, but most of these cases were filed many years ago. Out of 400 cases, most of appeals were filed at the level of tribunals.
Secondly, the figure of 400 cases may include combined cases relating to sales tax, customs and Income Tax Department pending with the LTU, Lahore.