Crest to ensure error-free verification of taxpayer data: FBR

The authenticity of the taxpayer data available under the Computerised Risk-Based Evaluation of Sales Tax (Crest) system would be duly checked to ensure implementation of 100 percent error-free sales tax verification system. The system would mainly deal with the monitoring/analysis of sales tax returns, refunds, invoices etc, exposing sectors issuing excessive refund invoices against actual less GST payments.
Sources told Business Recorder on Friday that the pilot project of the system has been launched, whereas taxpayers would be provided an opportunity to verify the information available with the system. Within the next three months, system bugs would be removed, if any. The system has been indigenously developed without any cost as compared to highly expensive computerised systems procured for clearance of imported consignments.
Sources said that Ahmad Waqar, chairman FBR has asked the Crest team to evaluate the performance of the system after completion of pilot project in the next three months. It is also learnt that the tax authorities had taken notice of lukewarm attitude of Pral for not extending technological support for the successful implementation of automated projects.
Tax authorities opined that no hindrance shall be tolerated in the development and implementation of integrated programs for broadening of tax base and plugging revenue leakage. Tax authorities would convene a meeting in second week of December with the Crest team and Pral management for chalking out an effective mechanism to stymie the virus of data errors.
The Sales Tax wing of FBR developed the "Crest" software with following objectives: Firstly, development of a transparent voluntary compliance system to remove the irritants that hurdle the complaints. Secondly, fully automated setup to minimise the human interference through this system.
Thirdly, it would provide tax gap analysis to indicate areas of revenue leakage. Fourthly, it would act as a valuable tool to monitor the performance of machinery and fifthly the system would provide an air of transparency and efficiency to entire taxation system. The Crest system is developed based on well-defined universal parameters. It provides no free ends scrutiny and develops its model in accordance with existing business modules.
The Crest software development team tested the data and results over a period of two years. They critically analysed the currently operating manual system that exist in the sales tax field for more than a decade and retained its efficient characteristic in the automated new system. The automated taxation systems in other developing countries were also studied and important salient features were merged into Crest software.
The final output of hard work carried out by software development team produced a web-based system, which captures and conduct analysis on real time basis. The basic algorithm of Crest is monitoring of declarations made in Sales Tax Return with available data of third party to have 360-angle review.
For this purpose, the Crest utilises data of return, registration, import export invoices, summaries and utilities. The registered person shall be given a chance to explain any discrepancy. It will be put in queue in case and on the degree of discrepancy. The system shall also show average benchmark in different sectors on the basis of taxpayer's declaration.
The person showing transaction well below such marks will be liable to audit. System doesn't have any room to select any case on presumptive basis. The Crest shall record the performance of all officers and through alerts will remind the next in command if the assigned task is not performed within specified time frame.
All officers shall be assigned access only to areas of their specified job. Officers falling below their performance may lose special allowance or double pay package. The FBR chairman highly appreciated the efforts of, Crest architect, Shafqat Mehmud for development and up-gradation of the system.