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Karachi Regional Tax Office (RTO) has selected 67 more cases of corporate and Association of Persons (AOPs) through balloting for tax audit 2008. The cases were selected in wake of the fact that the Federal Board of Revenue (FBR) had selected over 50 percent 'Nil' and 'withholding' cases through random ballot. They said that out of the total 141 cases selected by the board for audit, only 74 cases are live cases.
However, of the remaining 67 cases, 28 cases are in presumptive tax regime, 27 cases are nil income cases and 12 cases have already been audited by the department. They said the department had earlier sent a letter to the chief, taxpayers audit wing, FBR for the removal of nil revenue potential cases from audit. Therefore, the board has allowed the department to carry out random balloting again in the presence of ICAP representatives to pick live cases.
They further said the RTO has formulated three categories for the selection of corporate cases for tax audit 2008. As per that, 05 cases were selected where turnover was Rs 500 million and above. While, in 16 cases where turnover was between Rs 150 million to Rs 500 million and 46 cases are those where turnover exceeded Rs 1 million to Rs 150 million.
They said that composite audit would be undertaken irrespective of the size of business or income and if already assessed cases reselected in ballot, the audit report in this regard would be sent to FBR. They said the board has also instructed all RTOs and LTUs to complete the process by attaching officials to CA firms for monitoring the audit process and added that the data of these cases would be entered into Tax Audit Monitoring System (TAMS).

Copyright Business Recorder, 2010

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