The Federal Board of Revenue (FBR) is finalising the National Audit Plan for 2010-2011 for which comments have been sought from the Commissioners Inland Revenue of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs). Sources told Business Recorder here on Thursday that the new audit plan has been finalised in view of past experiences.
However, the input of FBR Members and Commissioners of LTUs/RTOs would be incorporated in the new audit plan. The results of the existing audit plan would be carefully examined before issuance of the new National Audit Plan (2010-2011). The experience of existing composite audits would help the department to further improve the plan.
A key feature of the new audit plan is that the strategy would be acceptable to the business and trade. This would ensure implementation of a transparent audit system to check loss of revenue in the field formations. The experience of the international audit experts and consultants would be incorporated in the Audit Plan (2010-2011).
The new plan 2010-2011 would determine and ensure maximum audit coverage of large and medium size taxpayers located in the jurisdiction of various field formations throughout the country. It would ensure that the taxpayers are selected for audits from different sectors of economy on the basis of transparent, discretion-free and automated selection criteria.
Sources added that under the random balloting, taxpayers were selected for audit in two different categories of corporate cases and AOPs (Association of Persons). The audit covered 0.04 percent of total taxpayers of the country. The audit of companies is successfully underway by the Chartered Accountants. The departmental officers/auditors have been engaged in conducting audit of the AOPs.
According to the FBR instructions issued to the DGs LTUs/RTOs on Thursday, the next audit plan is being designed. It is, therefore, requested that the proposals on the matter may kindly be provided to the FBR so that the same be considered at the time of finalising the plan. The suggestions of the DGs LTUS/RTOs be submitted to the FBR by mid-March 2010.
It is worth mentioning that the Taxpayers Audit Monitoring System (TPAS) for automation of Taxpayers Audit and monitoring Auditors transactions/ activities during the audits of Income Tax & Sales Tax has been developed with the help of M/s PRAL. The system will not only ensure the quality of audit reports but will also minimise the time taken in completion of audits.