AuditThe Audit Policy 2018 pertaining to Tax Year 2017 has been approved by the Federal Board of Revenue and a computer ballot was held at FBR (HQ). State Minister for Revenue Muhammad Hammad Azhar and Chairman FBR Mohammad Jehanzeb Khan announced the Audit Policy-2018 and inaugurated the balloting process, says a press release issued here on Friday.
The selection of cases this year has been done on parametric basis. Advanced data analytics have been used to design parameters to make sure that only non-compliant tax payers are selected. As a result, this year only 2.3% of total cases available for audit for Income Tax, Sales Tax, and FED have been selected compared with 7.5% cases selected in last year’s ballot.
For facilitation of taxpayers, this year the Tax Periods for Sales Tax and FED audit would be the corresponding accounting period adopted for the purpose of return of income under the Income Tax Ordinance 2001. In previous years, financial year was selected as Tax Period for all taxpayers, which caused undue hardship to those who had opted Special Tax Year for accounting purposes. Furthermore, the FBR has decided that taxpayers who have been audited in Income Tax in any of the preceding three Tax Years i.e. 2016, 15, and 14 and salaried individuals have been excluded from this year’s ballot. The Audit Policy 2018 and National Tax Numbers/CNIC of cases selected for audit have been placed on FBR’s website at www.fbr.gov.pk-PR