External accountants: Senior tax officials empowered to assign re-audit of taxpayers

ISLAMABAD: The government has empowered the senior tax officials to assign re-audit of accounts of the sales taxpayers to the external accountants or cost accountants for further audits.

The updated Sales Tax Act, 1990 revealed that if, at any stage of the tax proceedings before him, the Commissioner, having regard to the nature and complexity of the accounts; or volume of the accounts; or doubts about the correctness of the accounts; or multiplicity of transactions in the accounts; or specialised nature of business activity of the registered person, and in the interest of the revenue, believes that it is necessary so to do, he may, after giving the registered person a reasonable opportunity of being heard, and with the previous approval of the Chief Commissioner, direct the registered person to get either any or all of the following:

(i) Accounts re-audited by an accountant, and to furnish a report of such audit duly signed and verified by such accountant including answers to the specific queries as the Commissioner may require;

(ii) Inventory re-valued by a cost accountant, and to furnish a report of such inventory valuation duly signed and verified by such cost accountant including answers to the specific queries as the Officer of Inland Revenue may require.

The accountant or the cost accountant, as referred to in this sub-section, shall be nominated by the Commissioner for the said sub-section from amongst the panel of such accountants or cost accountants nominated by the FBR.

After completion of the audit, the officer of Inland Revenue shall, after obtaining the registered person’s explanation on all the issues raised in the audit, issue an audit report containing audit observations and findings.

After issuing the audit report, the officer of Inland Revenue may, if required pass an order under section 11E, after providing an opportunity of being heard to the registered person under sub-section (1) of section 11E, updated Sales Tax Act added.

Copyright Business Recorder, 2026