Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) have not received any new taxpayer audit plan for Tax Year 2010 from the Federal Board of Revenue (FBR) for carrying out composite audit of the sales tax and income taxpayers.
Sources told Business Recorder here on Thursday that every year the FBR issues a composite audit plan for conducting audit of the registered persons. So far the field formations have not received any Taxpayer Audit Plan for Tax Year 2010. In the absence of the audit plan, the field formations have no guidelines for conducting audit, except provisions available under section 177 of the Income Tax Ordinance 2001.
It is major failure of the FBR Taxpayer Audit Wing that it has not dispatched the Taxpayer Audit Plan for Tax Year 2010 to the field formations. The FBR has a separate Taxpayer Audit Wing for exclusively dealing with audit but senior officials in the field formations have confirmed that the Board has not issued any Taxpayer Audit Plan for Tax Year 2010.
Under the ongoing reforms in the tax administration, the effective audit is one of the most important tool, but it seemed that the FBR Taxpayer Audit Wing has yet not finalised the Taxpayer Audit Plan for Tax Year 2010 for proper audit in the filed offices. Sources said that the audit plan for the Tax Year 2010 is expected to be discussed in the upcoming Chief Commissioners' conference to be held next week.
Presently, the field formations have been engaged in the selection of cases for audit under section 177 of the Income Tax Ordinance 2001. When contacted, a tax expert said that the issue in the field formations is that whether the FBR is going to issue parameters or guidelines for selection of cases for audit under section 177 of the Income Tax Ordinance 2001. Secondly, another issue is whether the commissioner can select cases for audit unless the Board has laid down criteria for selection of such cases for audit, he added.
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