LAHORE: The Large Taxpayers Unit (LTU) Zone-II had collected Rs 100 million under the head of thin capitalization in the last financial year which is disallowing interest expense if the foreign loan is more than three times the foreign equity. This was stated by the Shabih-ul-Aijaz, Additional Commissioner Audit, Zone-II Large Taxpayers Unit (LTU) Lahore during his exclusive interview to the Customs Today.
He said that due to outstanding performance LTU, zone-II collected Rs 70 million under super tax which is new levy imposed by the government under the Finance Act 2015. The concept of super tax is that anybody whose aggregate income is more than Rs 500 million, he is liable to pay three percent more taxes from his normal tax.
He said zone-II conduct audit of taxpayer companies those selected by the Federal Board of Revenue (FBR), Through Random Ballot, added more commissioner authorized for the selection of any case for the audit.
Talking to Customs Today Shabih-ul-Aijaz told that there is difference in between the selection of case for audit by the FBR headquarter and Commissioner of the zone, the board selects cases through random ballot but selection of case for audit by the commissioner is done by informing reasons of selection of taxpayers for the audit.
The commissioner select case for audit and assign the duties to the concerned Deputy Commissioner and inform the taxpayer company that your case has been selected for audit under these reasons and contact to the relevant person, provide all required data for audit.
Additional Commissioner said that Federal Board of Revenue (FBR) select cases under the income tax ordinance 2001. Board select cases under the section 214C and Commissioner select cases under section 177 of the income tax ordinance 2001.
If any case selected by the FBR and commissioner already conduct the audit of same case then case has been closed and sent report the board.
Shabih-ul-Aijaz told that the cases for the year 2014 under the audit process, totally 42 cases under his jurisdiction in the processing assigned by the FBR and almost 35 cases selected by the commissioner also processing for audit.
Under section 122/5A the additional commissioner send statutory notice that assessment is erroneous and prejudicial to revenue and needs to be amended and in this section more than one billion was collected last year.
After the checking of tax returns, Balance Sheet and profit and loss account if officers found any discrepancy like taxpayer not submitted some specific tax are paid less taxes than zone send notice and order to pay additional tax, In this situation taxpayers having the option to pay taxes or go in the appeal.
