ISLAMABAD: As part of the measures to curb corruption in the tax machinery, Finance Minister Ishaq Dar is going to announce a new system “Electronic Scrutiny and Intimation” (e-scrutiny system) to issue electronic intimations/advance notices to taxpayers for rectification of their mistakes before initiation of legal action by tax officials.
As per details, legal cover to the new “e-scrutiny system” will be provided through Finance Bill (2014-15), providing the business community with the opportunity to rectify their mistakes prior to any legal proceedings by the tax department. The computerised system will be used for scrutiny or analysis of sales tax return filed by the registered persons with the aim to facilitate taxpayers.
The new system will also reduce interaction between taxpayers and tax collectors and minimise discretion. This e-scrutiny system will conduct all kinds of checks and analyses objectively, and will issue electronic intimation to taxpayers so that they can correct their mistakes before initiating legal action. It will also track their response and actions taken by officers. It is, therefore, proposed to introduce legal provisions for such computerised system to improve efficiency and prevent harassment of taxpayers.
The board will implement the computerised system for automated scrutiny, analysis and cross-matching of returns and other available data relating to registered persons, and to electronically send intimations to such registered persons about any issue detected by the system. The intimation sent by the computerized system shall be in the nature of an advice or advance notice, aimed at allowing the registered person to clarify the issue, rectify any mistake, or take other corrective action before any legal or penal action is initiated.
The computerised system shall keep record of the issues detected, intimations sent, responses received and actions taken, and shall present such information to the officer of Inland Revenue and to the board in the prescribed manner. The Board may prescribe procedures and specifications for the smooth and efficient operation of the computerised system, sources added.
