Legal Wing is a very important wing of the FBR. It helps in implementation of the tax laws fairly and squarely which contributes to achieving growth in revenue.
Collectors (Appeals), Commissioners (Appeals), Departmental Representatives, Commissioners (Legal) directly report to the Legal Wing.

• There is a paradigm shift in the working at FBR as it is now considered as the most investment and business friendly organization. By reposing confidence in the taxpayer community and simultaneously implementing the tax law fairly and squarely, the FBR is in the process of achieving growth in revenues.
   

• The FBR’s Tax Administration Reform Program has enabled FBR to introduce Reforms that have enabled growth in revenues, increase in the number of taxpayers, and improvement in voluntary compliance. 
   

• The Federal Board of Revenue Act, 2007 has been incorporated in the Finance Bill, 2007 which will have tremendous impact on growth in revenues, and bring positive improvement in the working of Federal Board of Revenue and its sub-ordinate offices.
   

• The FBR’s Tax Administration Reform Program has also enabled FBR to introduce reforms of reduction in litigation coupled with creating better environment for taxpayers to discharge their obligation to the state.
   

• The institution of Federal Tax Ombudsman created in the year 2000 to tackle the issues of mal-administration on the part of the officials of the tax department. This institution has disposed of over 6000 complaints in five years, and has enabled improve working of the tax administration.
   

• Pakistan is pioneer and fore-runner in introducing the Alternate Dispute Resolution (ADR) mechanism. This strategy is a part of the Reforms Programme which is on the right track.
   

• The ADR coupled with reduction in litigations and special bench of Supreme Court deciding appeals, has an impact on the litigation at High Court and Tribunal level and provides easy access to justice.
   

• Computer Networking and Connectivity with all the adjudications and appeals offices, both Direct and Indirect Taxes, Appellate Tribunal Benches/Headquarters, Registrar’s Offices at High Courts and the Supreme Court, FTO Office, ADR Centres/Offices etc and with the Board is planed for early disposal of cases and for other relevant matters.

Coordination with other FBR 's Wings

• Representation of the appeal matters at the Tribunal, High Court and Supreme Court level.
   

•  Vetting of contracts, rendering of opinion and advice to the line Members and resolution of legal disputes.

•  Federal Services Tribunal and Supreme Court matters (service matters assistance).
   

•  FTO matters.
   

•  Alternative Dispute Resolution matters.
   

•  Support to the reforms process

Other Activities of Legal Wing

Keeping liaison:

• Liaison with Court official, Establishment and Law Division and over one hundred advocates on FBR panel.
  
  

Monitoring and Overseeing:

•  Monitoring of administration work.
   
• Overseeing work of 05 Collectors (Appeals) and 06 Commissioners (Appeals).

Improvements in Different Areas

• The FBR’s Tax Administration Reforms Program has enabled the Legal Wing of FBR to introduce reforms of reduction in litigation coupled with creating better environment for taxpayers to discharge their obligation to the state.

• The institution of Federal Tax Ombudsman was created in the year 2000 to tackle the issues of mal-administration on the part of the officials of the tax department. This institution has disposed of over 6000 complaints in five years, and has improved working of the tax administration. Presenting of complaints to the FTO Office.(section 10)
   

• Admission rejection of complaints at preliminary stage
   

• Dispatch of complaints to the concerned field formations
   

• Disposal of the complaint at the field level, if the demand is genuine.
   

• Para-wise comments by the Commissioner/Collector to the allegations leveled in the complaint.
   

• Forwarding of these comments to the FTO Office, if accepted the complaint disposed of accordingly.
   

• Issuance of notice for hearing of both the parties, in case the comments do not satisfy the FTO.
   

• Receipt of recommendations/findings from the FTO Office.
   

• Dispatch to the relevant field formations for implementation, if they accepted.
   

• To file review to the FTO against its own order in case of errors or non consideration of certain facts put forward by the department. Defiance proceedings can be initiated if an employee is prima facie responsible for a default.
   

• Representation to the President against the Order of the FTO.
   

• It attains finality and can be filed within thirty days of the receipt of this order by the Secretary, Revenue Division.
   

• Application under section 38 of the Establishment of the Office of Federal Tax Ombudsman Ordinance, 2000 can be filed to the Law & Justice Division for rectification/removal difficulties in the order of the President. However no review/revision can be filed against the President order. It attains finality and shall be implemented by the field formations.

• Reduction in litigation is a part of the FBR’s Reforms Program to create certainty for the taxpayers. Intake of appeals has also been reduced, due to change in the processes.
   

• We had total 78000 appeals during 2003-2004 (both for Direct and Indirect Taxes) at the first appeal stage. Now the pendency is 3317 appeals. The remaining stand decided. Therefore, currently we have no backlog.

• As on 31st December 2005, total number of appeals pending with Appellate Tribunals was 23359 plus fresh intake. This number has been bought down to 11500 by December 2006. The number will be further reduced to 2000 by June 2007.
   
• Issue-wise identification and fixation of appeals, bunched together, has being taken up.

Alternative Dispute Resolution Mechanism

• Pakistan is pioneer and fore-runner in introducing the Alternative Dispute Resolution (ADR) mechanism. This strategy is a part of the Reforms Programme which is on the right track.
   

• The ADR coupled with reduction in litigations and special bench of Supreme Court deciding appeals, will have impact on the litigation at High court and Tribunal level and will provide easy access to justice.

Computer Networking and Connectivity

Computer Networking and Connectivity with all the appeals offices, (both Direct and Indirect Taxes), Appellate Tribunal Benches/Headquarters, FTO Office, ADR Centres/Offices etc and with the Board is planned for early disposal of the cases and other relevant matters