Withholding agents: FBR orders immediate inspection of tax records

The Federal Board of Revenue (FBR) has ordered immediate inspection of tax records of the withholding agents across the country covering audit of agents, scrutiny of stocks of agents, action against non-filers of the withholding statements and verification of the tax declared in the withholding statements.
In this regard, the FBR has issued instructions to the Chief Commissioners of Regional Tax Offices (RTOs) here on Saturday for inspection of withholding agents.
According to the FBR, in order to achieve the assigned targets and to meet the objective Chief Commissioners are requested to carry out an inspection of withholding zone working in RTOs on the following lines:
Firstly, the inspection should focus on the total stock of the withholding agents and the relevant sections of the withholding tax regime. It should be ensured that each and every withholding agent relating to relevant sections has been enrolled with the Withholding Commissioner and the tax is withheld accordingly.
Secondly, the inspection should ensure that each and every withholding statement filed has been audited and action under section (u/s) 161/205 of the Income Tax Ordinance has been taken. The demand created and collected must reflect the percentage of the withholding agents who have been audited.
Thirdly, action against non-filers of the withholding statement should also be taken up on priority, the FBR said.
The FBR has directed Chief Commissioners that the inspection must include the mechanism of the verification of the tax declared in the withholding statement and its corresponding verification with the computerised payment receipt (CPR). In order to ensure the cross verification please depute an "SO Verification" at the CIR Office. The job of the SO Verification should be the submission of daily report to CIR Office and the weekly report to CCIR Office.
The FBR has desired that an inspection report on the above referred lines may reach in the office of Member (IR-Operations) by March 1 2016.
The FBR added that considering the fact that the overall withholding collection in respect of maximum RTOs is below the National Average and if RTOs shortfall cannot be met, it is advised that Saturdays be utilised by the RTOs, the FBR said.