LCCI opposes investigative powers to CBR DGI

The Lahore Chamber of Commerce and Industry (LCCI) on Tuesday voiced grave concern over a report published in a section of press wherein the Directorate General of Intelligence and Investigation has sought powers for selecting the cases for income tax audit under the Universal Self-Assessment Scheme (USAS) and creating a parallel investigation system in addition to audit under the Income Tax Ordinance - 2001.
In a joint statement issued on Tuesday, the LCCI President Shahid Hassan Sheikh, Senior Vice President Yaqoob Tahir Izhar and Vice President Mubasher Sheikh said that the investigative powers to the DG intelligence would spoil the whole business atmosphere in the country.
They said that it seems that some vested interests are working on a well-planned agenda against the present regime which is making all out efforts to bring economic prosperity and stability.
The LCCI office bearers said that the Central Board of Revenue (CBR) had been meeting the all the revenue targets for the last many years therefore there is no need for the introduction of a parallel system.
They said that the section 177 was a major deterrent to check misuse of USAS and extending audit powers to the DG intelligence would create a parallel investigating system within income tax regime which is a clear violation of the whole USAS where selected taxpayers were picked for audit.
The LCCI office-bearers said that the powers the DG intelligence would open doors to corruption and harassment as the taxpayers including shopkeepers and traders, who are already afraid of audit and adjudication, would have to face intelligence agency apart from the income tax department.
They demanded of the President and Prime Minister to stop any such move that is bound to damage the government's popularity graph. It is worth mentioning here that without prior notice, directorate wanted full access to any premises, place, accounts, documents or computers.
They can stamp, or make an extract or copy of any accounts, documents or computer-stored information to which access is obtained and impound any accounts or documents and retain them for so long as may be necessary for examination or prosecution purposes. The directorate has also demanded powers to issue notices to obtain evidence from any person whether or not liable for tax under section 176.