KARACHI: Tax authorities are empowered to re-audit individual or company even if the taxpayer has faced inquiry into the financials during the past three years, sources said on Saturday.
The sources, clarifying a latest tax law, said commissioners Inland Revenue (IR) have power to select an individual or a company for audit anytime even if examination of records has been done during the last three years.
The sources said the FBR issued a clarification on an amendment into the Finance Act 2018 under which the commissioner IR was restricted to conduct audit of any individual or a company if the case was selected during the last three years.
“Yet, the commissioner can still select anyone for audit under section 177 of Income Tax Ordinance 2001 even if the taxpayer was selected for audit in any of the preceding three tax years with due approval,” an official said.
Under the ordinance, the FBR is empowered to select people for income tax audit through random or parametric computer ballot under section 214C of the Ordinance.
The commissioners have the mandate to select taxpayers for audit of their income tax affairs after explaining reasons.
Moreover, the powers of a commissioner to select taxpayers for audit are independent of the powers exercised by the FBR with respect to selection of taxpayers for audit through random or parametric computer ballot.
The sources said an individual could be selected for audit under section 177 and 214C of ordinance, 2001 prior to the amendment.
The FBR said an amendment was inserted to mitigate hardship of taxpayers in repetitive audits repetitively.
The powers of the board and the commissioner to select an individual or company
for audit of income tax affairs repetitively for successive tax years were curtailed under
the law.
The headquarters of the Sui Southern Gas Company . — APP FileKARACHI: Sui Southern Gas Company has launched a fresh...
The logo of the ExpoMed Eurasia. — CA MI websiteKARACHI: Pakistan is participating in ExpoMed Eurasia, a leading...
Gold bars are seen in this undated file photo. — AFP/FileKARACHI: Gold prices increased by Rs500 per tola on...
FFBL Head Office building can be seen in Islamabad. — FFBL WebsiteKARACHI: Fauji Fertilizer Bin Qasim Limited has...
Representational file of an MBW car. — AFP FileLAHORE: Small improvements in economic credentials of the country are...
The logo of the Oil and Gas Regulatory Authority . — Ogra websiteKARACHI: After Pakistan’s oil refineries,...