ISLAMABAD: The Federal Board of Revenue (FBR) will conduct computer balloting for the selection of cases for audit pertaining to the Tax Year 2016 today (Thursday). In this regard, a ceremony will be held here at the FBR Headquarters where Advisor to PM on Revenue Haroon Akhtar Khan is likely to conduct the balloting.
A day earlier, the FBR approved the Audit Policy for 2017 pertaining to the Tax Year 2016. Criteria for selection of cases for all taxes would be parametric. In this regard, the FBR has decided that a taxpayer once selected for audit will not be selected again for the next two tax years under section 214C of the Income Tax Ordinance 2001, and under section 72B of the Sales Tax Act 1990 and 42B of the Federal Excise Act 2005, respectively.
Sources told Customs Today that the selection will be made on the basis of various risk parameters developed after consultation with all stakeholders. Prominent representatives of the Pakistan Tax Bar Association, the Islamabad / Rawalpindi Tax Bar Association, Federation of Pakistan Chambers of Commerce and Industry, Islamabad Chamber of Commerce and Industry, Rawalpindi chamber of Commerce and Industry, members of media and senior officials of the FBR will also be present on the occasion.
The source said that FBR, through Universal Self Assessment Scheme, had reposed full confidence in the taxpayers’ community. However, there are certain people who shun their responsibility by either not paying taxes or paying less than their due share.
The selection of approximately 15% of returns filed in LTUs, 5% of returns filed by corporate cases and 2% of returns filed by non-corporate taxpayers in RTOs is only to promote voluntary compliance. The selection is based on the parameters devised after consultation with all stakeholders.
In this regard, the source said that FBR had ensured transparency in the process of selection of cases for audit. The list of cases selected for audit has been placed on FBR’s website showing taxpayers’ National Tax Number only without displaying their names.
It is pertinent to mention here that audit such purposes base year would be TY 2015 for income tax and tax periods July 2014 to June 2015 for sales tax & federal excise duty. The parameters for selection of cases for audit in the aforementioned Audit Policy include that for the income tax, according to section 214C (1A) of Income Tax Ordinance, 2001 the Board shall keep the parameters confidential.
