ISLAMABAD: The Federal Board of Revenue (FBR) announced on Friday that the criteria for selection of audit cases (for all taxes) for Tax Year 2018 is risk-based and parametric. According to the details of the audit criteria released by the FBR here on Friday, the cases have been selected through a scientific approach for which a software has been designed, and put in place named as "Risk-Based Audit Management System" (RAMS).
This software empowers the Federal Board of Revenue (FBR) to focus on non-compliant taxpayers and thus facilitate compliant taxpayers helping build confidence of taxpayers in the Audit system.
The ceremony for parametric computer balloting as per the Audit Policy, 2019 for selection of cases for audit for Tax Year 2018 in respect of persons or classes of persons falling under all or any of the three domestic Federal Tax Statutes i.e. Income Tax Ordinance 2001, Sales Tax Act 1990, and Federal Excise Act 2005 was held at Federal Board of Revenue, Headquarter, Islamabad.
Chairman FBR Muhammad Javed Ghani said that FBR is working on the principles of transparency, simplicity and predictability and informed that certain categories of the taxpayers are excluded from selection i.e. those picked up for investigations by FBR Intelligence & Investigations Wing, all cases where income chargeable to tax under the head salary and /or pension exceeds 50% of taxable income, except cases having business income.
Copyright Business Recorder, 2020
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