KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded the Federal Board of Revenue (FBR) to immediately stop the audit proceedings either selected manually or computer balloting as it was declared illegal by the court of law, according to a statement on Monday.
Fazal Kadir Sherani, president of the FPCCI and Zakaria Usman, chairman of the FPCCI Standing Committee on Coordination with the FBR, urged Ali Arshad Hakeem, chairman of the revenue body, to immediately issue instructions to the RTO-II Karachi to do away with the audit of returns, selected either manually or through computer balloting based on joint parametric selection criteria under the income tax, sales tax and the federal excise laws, as it is clearly against the audit policy of the board, it said.
They also said that the FBR as per the law, is authorised to select cases for audit only through parametric computer random balloting based on either income tax, sales tax or the federal excise laws; therefore, the cases selected through computer balloting based on joint parameters under the income tax, sales tax and the federal excise laws have been declared illegal by the Lahore High Court.
Moreover, they said that the FBR in its earlier letter communicated to all tax officials had given clear instructions that only the taxpayers selected through parametric computer random balloting would be audited.
The FPCCI also expressed concern over the report that the tax officials have been assigned new tax target for recovery through audit.
“Assigning such targets specifically for the Karachi-based tax officials is discriminatory in nature and ultra-vires of the constitutions.”“Rather than simply targeting Karachi and other parts of Sindh, the entire country should be brought within the scope of such exercise,” they said.