The Federal Board of Revenue (FBR) has approved audit of corporate and non-corporate cases under section 177 of the Income Tax Ordinance 2001. Sources told Business Recorder on Monday that the board has decided to constitute a committee for finalising parameters for carrying out effective audit of corporate and non-corporate cases.
The committee would formulate the parameters and communicate to the Director Generals Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) after filing of income tax returns till October 31 2008. During conference of the director generals on Monday, the FBR has given permission to the field formations to start audit of both the corporate and non-corporate cases.
It is worth mentioning that the board had repeatedly directed the field formations to use audit, under Income Tax Ordinance 2001, as an effective deterrent for improving direct taxes collection under the Universal Self Assessment Scheme (USAS). The deterrent must be in place to obtain maximum benefit under the USAS. In the absence of effective deterrent of audit, taxpayers would make massive mis declarations in the returns being filed under the USAS. Sources said that the taxpayers' facilitation does not mean that taxpayers be given free hand to declare whatever they like under the USAS. The taxpayer should declare actual income on the returns for which audit would be done on the basis of parameters being laid down by the board.
Tax authorities were of the view that a middle way be adopted so that neither the taxpayers get frustrated nor free hand be given to them under the USAS. Once taxpayers started declaring accurate income, the direct taxes collection under this head would automatically improve during current fiscal. The audit would be conducted without causing harassment to the taxpayers, sources added.
Comments
Comments are closed.