Audit of income tax: FBR's internal inspection dept to check authenticity

The internal inspection department of the Federal Board of Revenue (FBR) will check the authenticity of audit of taxpayers of income tax under section 177 of the Income Tax Ordinance 2001 to remove any mistake made by the tax officials, while framing assessment cases against the registered persons.
Sources told Business Recorder here on Monday that the inspection of the Directorate General Internal Audit of the FBR would focus on the qualitative aspect of performance of the tax officers with reference to the respective duties and functional jurisdictions and also evaluate the efficiency of the officers in carrying out their statutory duties.
According to the newly devised DG Internal Inspection Manual (2011), the internal inspection would cover different areas on direct taxes side. The inspection teams of the FBR will check whether audit has been accurately conducted under section 177 of the Income Tax Ordinance, 2001.
The inspection would also check the qualitative and quantitative disposal by making amendment in assessments u/s 122 of the Ordinance 2001; computation of taxable income, giving effect to appeal orders and rectification's of orders in respect of cases related to audit.
The internal inspection of tax records would also check the performance of the tax officials while framing assessments u/s 120, 120-A, 143, 144 and 145 of the Ordinance 2001; revision of assessments u/s 122-A & 122-B of the Ordinance; provisional assessments u/s 123 of the Ordinance; best judgement assessment u/s 121 read with sub section (10) of section 177 of the Ordinance in respect of cases under audit; imposition of penalty in respect of cases selected for audit, loss cases and set-aside cases and finalisation of complaints of existing taxpayers.
The internal inspection department of the FBR will check the quality of sales tax audits being conducted by the officials of Inland Revenue. The inspection would cover all audits including desk audits/investigative/composite/post refund audits; special Audit under Section 32-A; determination and assessment of taxes/duties/liabilities and progress made on previous inspection/audit reports of Directorate of Internal Audit; review of internal controls as applicable in the organisation; conformity to prescribed procedures and maintenance of prescribed records and any other function as may be assigned, sources added.