Manual Selection of cases for Audit flayed

Manual Selection of cases for Audit flayed


Islamabad, February 02, 2013 (PPI-OT): Sheikh Shakeel Ahmed Dhingra, Vice President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a press release issue today has urged Ali Arshad Hakim Chairman Federal Board of Revenue (FBR) to withdraw the letter dated January 17, 2013 issued to all the Chief Commissioners of Inland Revenue informing them that they posses inherent powers to conduct audit as per sections 177, 25 and 46 of the Income Tax Ordinance 2001, Sales Tax Act 1990 and Federal Excise Act 2005 respectively for manual selection of audit.

He argued that the instructions contained in the above referred circular are not only contrary to the spirit and the law but have created unnecessary confusions amongst the taxpayers and the tax collectors particularly when the issue of “selection” and “conduction” of audit had already been threshed out by the Honorable Court.

He added that it is wrongly interpreted that Commissioners are now authorized to select cases for audit as it has to be read with section 214 C of ITO, 2001, where the law and procedure of “selection” has also been stipulated and as such powers to select the cases for audit only lies with the Board according to which the taxpayer will first be selected for audit under section 214C by the Federal Board of Revenue and only then would the Commissioner conduct its audit in accordance with procedure given in section 177.

The FPCCI’s, Vice President disclosed that Honorable High Court Lahore in its Judgment Case dated 28.12.2012 has already decided that the composite audit under the above said three tax laws is not tenable and as such FBR letter dated 17.1.2013 is in clear violence of assurance given before the Honorable High Court by the FBR. He therefore urged to select the cases for audit on the basis of parametric computer random selections to maintain the transparency.

For more information, contact:
Syed Masood Alam Rizvi
Secretary General
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Karachi-75600, Pakistan
Tel: 0092-21-35873691, 93-94
Fax: +9221 3587 4332



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