ISLAMABAD: The taxpayers’ parametric audit selection would be carried out under new Audit Policy 2016 to avoid litigation in courts.
The Federal Board of Revenue (FBR) took decisions on the new Audit Policy 2016 during the last meeting of the Board-in-Council held at the FBR House.
During the meeting FBR Member Taxpayer Audit (TPA) made a detailed presentation on the draft Audit Policy 2016. The FBR members were informed that in the one of previous years ie tax year 2011, parametric audit selection was carried out by the FBR. However, for tax years 2012, 2013 and 2014, random audit selection was made. Litigation history for parametric and random audit selection was also discussed and decisions given by the courts were shared with the FBR members.
The FBR chairman emphasised that audit policy 2016 may be based upon work best practices and should not suffer from any legal deficiency so as to give rise to any unnecessary litigation.
