Audit cases for TY13: FBR excludes certain categories of cases from random computer ballot

Board-in-Council of the Federal Board of Revenue (FBR) has approved certain categories of cases to be excluded from random computer ballot for selection of audit cases for tax year 2013 (income tax) and tax period July 1, 2012 to June 30, 2013 (sales tax/FED) for audit.
The new audit policy 2014 issued by the FBR here on Monday revealed that the FBR has decided to go for random computer ballot for selection of up to 12 percent cases out of the total returns filed for tax year 2013 (income tax) /tax period July 1, 2012 to June 30, 2013 (sales tax/FED) for audit. Certain exclusions have been identified and approved by the Board which pertains to cases where audit is not required.
Those exclusions are as under: Within the category of Income Tax Corporate Returns, exclusion from audit would be all Final Tax Regime (FTR) cases; all cases already taken up for audit under section 177 of the Income Tax Ordinance, 2001 for tax year 2013 whether under process or finalised; all cases qualifying for immunity from audit under section 214C under "Prime Minister's Tax Incentive Scheme" under SRO 1040(I)/2013 dated 5th December, 2013 read with FBR circular number 15 of 2013; all cases already selected for audit through computer random ballot for tax year 2012 whether under process or finalised and all cases where no business is stated to have been conducted for tax year 2013. Within the category of Income Tax Non-Corporate Returns, exclusions included cases falling under the Final tax Regime (FTR), taxable income only from salary, all cases qualifying for immunity from audit under section 214C under "Prime Minister's Tax Incentive Scheme" under SRO 1040 (I)/ 2013 dated 5th December, 2013 read with Board's circular number 15 of 2013, taxable income only from house property, taxable income only from share from Association of Persons (AOP), all cases already taken up for audit u/s 177 of the Income Tax Ordinance, 2001 for tax year 2013 whether finalised or pending for assessment, all cases already selected for audit through computer random ballot for tax year 2012 whether under process or finalised, all cases where no business is stated to have been conducted for tax year 2013. In case of Sales Tax Corporate Returns, exclusions covered null returns, government departments, cases already taken up for audit for tax period July 1, 2012 to June 30, 2013 by the Commissioners Inland Revenue and all cases already selected for audit through computer random ballot for tax period July 1, 2011 to June 30, 2012 whether under process or finalised. Within the category of Sales Tax Non-Corporate Returns, it excluded categories of null returns, government departments, cases already taken up for audit for tax period July 1, 2012 to June 30, 2013 by the Commissioners Inland Revenue and all cases already selected for audit through computer random ballot for tax period July 1, 2011 to June 30, 2012 whether under process or finalised. Under the category of FED Corporate Returns, the exclusions included null returns, government departments, cases already taken up for audit for tax period July 1, 2012 to June 30, 2013 by the Commissioners Inland Revenue, all cases already selected for audit through computer random ballot for tax period July 1, 2011 to June 30, 2012 whether under process or finalised. Within the category of FED Non-Corporate Returns, the excluded cases are null returns, government departments, cases already taken up for audit for tax period July 1, 2012 to June 30, 2013 by the Commissioners Inland Revenue, all cases already selected for audit through computer random ballot for tax period July 1, 2011 to June 30, 2012 whether under process or finalised. In order to have a transparent mechanism for selection of cases for audit a third party non-personal oracle based software has been put in place for conducting random computer ballot for selection of cases for audit, FBR said. The Audit Policy 2014 for tax year 2013 (income tax) and tax period July 1, 2012 to June 30, 2013 was placed before the Board in Council on September 9, 2014 and was approved, FBR added.