Random computer balloting: 'selection of cases for audit not to cause any discrimination'

The Federal Board of Revenue (FBR) will ensure that the selection of cases for audit through random computer balloting not to cause any discrimination among taxpayer/registered person in any manner. The FBR on Monday issued the Audit Policy-2014 with the commitment to the taxpayers that if after audit the declaration of a taxpayer/registered person is found in order, the audit shall be closed. This will allay the fear of the taxpayer/ registered person whose case is being audited.
The FBR has made these commitments with the taxpayers in the new audit policy released here on Monday.
Following are the aims and objectives of the Audit Policy 2014: The random computer ballot for selection of cases for audit under the Sales Tax Act 1990, Income Tax Ordinance 2001 and Federal Excise Act, 2005 shall be conducted separately and the whole process to be based upon certain guidelines, FBR said.
The audit guidelines said that the setting out exclusions objectively in such a way to avoid selection of fixed income, final tax regime, cases qualifying for immunity from audit under S.R.O. 1040(I)/2013 dated December 5, 2013, cases already selected for audit through computer random ballot for the previous tax year ie tax year 2012 (income tax)/tax period July 1, 2011 to June 30, 2012 (sales tax/FED), cases pertaining to tax year 2013 (income tax)/tax period July 1, 2012 to June 30, 2013 (Sales Tax/FED) already selected by Commissioners Inland Revenue (CIR) for audit and Null filers as well as government departments for Sales Tax and Federal Excise Duty returns ballot, FBR maintained.
The FBR would ensure selection of cases for audit in a transparent manner through computer ballot. The FBR will conduct audit in a professional manner for creating an effective deterrence against tax evasion. It would identify tax avoidance loopholes through audit and ensure that separate notices under different tax laws are issued to taxpayers selected for audit to make the process transparent. It would ensure that all correspondence (Notices etc) are routed through Taxpayers' Audit Monitoring System and ensure that all statutory notices are served by legally approved modes only, audit guidelines added.