ISLAMABAD: Federal Board of Revenue (FBR) Chairman Nisar Mohammad Khan on Wednesday said that the board had finalized a new audit policy for the year 2016 and ballot for the selection of audit cases would be held soon. In the past, the cases for audit were mostly selected through random ballot.
Briefing the Senate Standing Committee on Finance and Revenue here, Nisar said that the audit policy for tax year 2016-17 proposed a paradigm shift from the past. Its focus has been realigned form random to parametric selection and from general to risk based approach.
He said that the approach would minimize chances of complaints from the taxpayers, resulting in increased confidence in the system. This new trend in taxpayers’ audit would not only promote compliance with the existing tax last but would also generate increased revenue through better declarations for better public spending by the government.
He said that the right audit approach would help FBR in broadening tax base and in focusing on high risk areas. This can be assured through equitable tax policies where taxpayer knows that good citizens are appreciated.
To a recommendation of the committee regarding amendment in Benami Transaction Prohibition Bill 2016, Nisar said that the FBR had agreed to propose a section as ‘reward to whistleblowers’. Under this section, the FBR may sanction reward to whistleblowers in case of credible information leading to detection of benami property or benami transaction.
However, he said that claim for reward by the whistleblower might be rejected if the information provided was of no value or the board already had the information. Information was available in public record or appeal against confiscation of benami property has not attained finality.
He said that purpose of section whistleblower meant a person who would report any property held benami to the FBR. The FBR may by notification in official Gazette prescribe the procedure in this behalf and also specify the apportionment of reward sanctioned under this section whistleblower.
‘Mode, manner and quantification of reward shall be separately notified through framing of rules,” he concluded.
