ISLAMABAD: The Federal Board of Revenue’s Board-in-Council has approved new Audit Policy 2016 for selection of taxpayers for audit.
Under the new policy, the cases which were earlier selected for audit last year will also be included in parametric selection process. The exclusions from audit selection have also been reduced under the new Audit Policy 2016.
The exclusions from audit for tax year 2014 included: Income Tax Corporate Returns: All person(s) whose entire income is exclusively subject to Final Taxation under the provisions of law as mentioned in sub-section (4) of Section 115 of the Income Tax Ordinance, 2001; all cases where no business is stated to have been conducted for the relevant tax year and no sales/ receipts have been declared; all cases already selected for audit for Tax Year 2013 by the Board U/S 214C; all cases already selected for audit by the CIRs for Tax Year 2014 under section 177(1) of the Income Tax Ordinance, 2001 and all cases qualifying for exemption from audit under clause (88) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001 (notwithstanding the omission of said clause through Finance Act, 2014).
Income Tax Non-Corporate Returns: All person(s) whose entire income is exclusively subject to Final Taxation under the provisions of law as mentioned in sub-section (4) of Section 115 of the Income Tax Ordinance, 2001; all cases where no sales/ receipts have been declared; taxable income from salary only; taxable income from share from AOP only; cases of pensioners drawing exempt income from pension; cases declaring foreign remittances only; all cases already selected for audit for Tax Year 2013 under section 214C of the Income Tax Ordinance, 2001; all cases already selected for audit by the CIRs for Tax Year 2014 under section 177(1) of the Income Tax Ordinance, 2001; all cases qualifying for exemption from audit under clause (88) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001 (notwithstanding the omission of said clause through Finance Act, 2014) and case(s) of persons(s) where one or more of the above exclusions apply.
Sales Tax Corporate: Null Return filers, federal, provincial and Local Government Departments; all cases of Steel Melters, and Steel Re-rollers who are paying sales tax under the Sales Tax Special Procedure Rules, 2007; all cases of Commercial importers only having no business other than commercial import business and who are paying 3% value added sales tax; all cases already taken up for audit for Tax Period(s) July 2013 to June ,2014 under section 25 ,and 38 of the Sales Tax Act , 1990 and all cases already selected for audit for Tax Period(s) July 2012 to June, 2013 under section 72B of the Sales Tax Act, 1990.
Sales Tax Non-Corporate: Null Return filers; Federal, Provincial and Local Government Departments; all cases of Steel-Melters, and Steel Re-rollers who are paying sales tax under the Sales Tax Special Procedure Rules, 2007; all cases of Commercial importers only having no business other than commercial import business and who are paying 3% value added Sales Tax; all cases already selected for audit for Tax Period(s) July 2013 to June ,2014 under section 25 ,and 38 of the Sales Tax Act , 1990 and all cases already selected for audit for Tax Period(s) July 2012 to June, 2013 under section 72B of the Sales Tax Act, 1990.
FED Corporate/ Non-Corporate Returns: Null Return filers; federal, provincial and Local Government Departments; all cases already taken up for audit for Tax Period(s) July 2013 to June, 2014 under section 46 of the Federal Excise Act,2005 Act ; all cases already selected for audit for Tax Period(s) July 2012 to June, 2013 under section 42B of the Federal Excise Act, 2005.
The scope of exclusions provided was restricted to cases to be selected for audit u/s 214C of the Income Tax Ordinance, 2001, Section 72B of the Sales Tax Act, 1990 and 42B of the Federal Excise Act, 2005.
