Audit exemption: FBR to notify delegation of powers to IR commissioners
ISLAMABAD: The Federal Board of Revenue (FBR) will issue a notification for the delegation of powers to the Commissioners Inland Revenue for the exclusion of those persons from audit whose income tax affairs have been audited in any of the preceding four tax years.
Sources told Business Recorder that the delegation of powers would need the approval of the Board-in-Council of the FBR.
Under the Finance Act 2022, the provisions of sections 177 and 214C shall not apply to a person whose income tax affairs have been audited in any of the preceding four tax years: Provided that the Commissioner may select a person under section 177 of the Income Tax Ordinance 2001 for audit with approval of the board, it added.
The notification for the delegation of powers for clause (105A) of the Part-IV of the Second Schedule of the Income Tax Ordinance 2001 requires approval of the board.
The section 105A of the Income Tax Ordinance 2001 says, "The provisions of section 177 and 214C shall not apply to a person whose income tax affairs have been audited in any of the preceding four tax years: Provided that the Commissioner may select a person under section 177 for audit with approval of the Board."
Due to the departmental accounts committee (DAC) meeting, FBR Member Audit and Accounting will not participate in the 4th Board-in-Council meeting (2022-23) to be held today (Tuesday).
The agenda item of approval of the draft audit policy for the tax year 2019 has been deferred and would not be presented by FBR Member Audit before the Board-in-Council meeting on November 22.
Copyright Business Recorder, 2022
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