The Federal Board of Revenue has decided to conduct audit of authorised importers of gold to check underpayment of taxes during the last few years. Sources told Business Recorder here on Friday that the FBR has issued instructions to the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) for audit of the gold importers.
According to the FBR instructions, all Chief Commissioners of the LTUs/RTOs should conduct audit of the authorised importers of gold. Sources said that the issue of payment of taxes by the jewellers' community was discussed during the last Chief Commissioners Conference at the FBR Headquarters. It was brought to the notice of the FBR that the jewellers are not properly paying taxes at the import stage, which needs to be checked. During this discussion, it was also pointed out that the tax deducted at the import stage by jewellers was not properly accounted for during last few years.
The FBR and the Chief Commissioners agreed that importers of gold are mainly active in jewellery business and re-export of the finished products. Therefore, it would be more appropriate to conduct audit of the gold importers to check deduction and payment of taxes at the import stage.
The gold importers have been engaged in the buying the yellow metal from the international market depending on international gold rates. Some of the commercial importers of gold have been engaged in import of the yellow metal for re-report purposes. It has to be seen whether the imported gold by the authorised importers has been used for re-export purposes or sold in the local market, sources added.