LAHORE: To maintain standards, the Large Taxpayers Unit (LTU) will ensure transparent audit of taxpayers’ cases selected by the Federal Board of Revenue (FBR) through random balloting or by the commissioners on finding discrepancies.
This was stated by LTU Zone-III Audit wing Additional Commissioner Farooq Azmat Chatha during an interview with Customs Today. He added that no pressure would be accepted in the whole audit process. He informed that cases for audit are either selected by the FBR Headquarter through computerised random balloting or by commissioner concerned.
After selecting the case through balloting, the audit commissioner concerned inform the taxpayer through notice that his case has been selected for audit by the FBR or commissioner for a specific year and orders the taxpayer to present record before the deputy commissioner, he added.
The deputy commissioner examine the expanses and income record under the laws i.e. Income Tax Ordinance, 2001, Sales Tax Act, 1990 and Federal Excise Duty Act, 2005, he said, adding that in some cases the LTU conduct composite audit under Income Tax Ordinance and Sales Tax Act.
He informed that if the cases are selected by the commissioner for audit after finding discrepancies then he also sends notices to the taxpayers for submitting the record of income, sales, etc.
During the audit process, the LTU officers ensure third party verification in some cases to examine income and expenditures details of taxpayers according to field tax returns and find the true liability in the case, Farooq added.
He said that some taxpayer shows concerns on random balloting due to the selection of their cases repeatedly by the computer, adding that concerned taxpayers also file cases in the courts against the department.
Talking about the cases, he said that 90 cases have been assigned him by the board for audit, adding that 50 percent of the cases are challenged in the court or out of his jurisdiction.
All LTU auditors tried to solve the assigned cases, as it is top priority of the department. He informed that the FBR has selected cases of 2014 for audit during the running fiscal year 2016-17, adding that some cases of 2012 and 13 are pending, which were being tried to solve as soon as possible. The FBR conducts random balloting mostly in November, December or in January.
Due to lack of cooperation/compliance by the taxpayers in some cases are causing delay, he said, adding that the LTU impose penalty on non-compliance taxpayers. The LTU also authorised to file the case before the tribunal on non-compliance.
Farooq said that the LTU showed outstanding performance in audit and achieved all targets under the supervision of Chief Commissioner Chaudhary Safdar Hussain, while Commissioner Tariq Chaudhary also played vital role in tax collection.
He said that most of dedicated, professional, competent and hardworking officers have been posted at the LTU, adding that the LTU will not only meet the target but also surpass it in order to strengthen the national economy.
