The Federal Board of Revenue has missed the target set for conducting audit of the 30 percent ''Active Taxpayers'' of the Large Taxpayers Units (LTUs) as it could conducted audit of only 6 percent during 2010-11. According to the selected performance indicators and targets by outputs in service delivery set under Federal Medium Term Budget Estimates (FMTBE) for Service Delivery 2011-14.
The Audit Wing of the FBR was given a target of conducting audit of some 30 percent ''Active Taxpayers'' of the LTUs, however, the target achieved during the outgoing fiscal year has been mentioned as 6 percent of the active taxpayers of LTUs.
As per report, the FBR intends to conduct 30 percent of the ''Active Taxpayers'' registered with the LTUs during the medium term 2011-14 and if this target is achieved than FBR would be able to tax the real turnover of the business and incomes of the large business houses and companies.
The FBR Taxpayer Audit Wing was given assignment to conduct audit of around 2 percent of the active taxpayers of the Medium Taxpayers Units (MTUs) in 2010-11 and this target have been fully achieved. The FBR has planned to conduct audit of 3% of the Active Taxpayers of the Medium Taxpayers Units (MTUs) during the medium term 2011-14.
The FBR Taxpayer Audit Wing was assigned to conduct audit of around 3% of the active taxpayers of the Small Taxpayers Units (STUs) in outgoing fiscal year 2010-11 and this target have been 100 percent achieved. The FBR wanted to conduct audit of 3 percent of the active taxpayers of the Small Taxpayers Units (STUs) during the medium term 2011-14. FBR would continue to audit 3 percent of the active taxpayers of the small taxpayers units during 2011-14.
The number of audits per auditors was fixed at 5 for the outgoing fiscal year, however, actual output achieved by the auditors of FBR was far more than the target and some 9 audits per auditor have been reported in the performance. Under the plan, the FBR has decided to increase the number of audits per auditor from actual 5 to 12 per year during 2011-14.
The number of auditors per audit of corporate unit was tasked to conduct at least 3 audits per auditors, however, they failed to do so and only one corporate audit has been reported against assigned three audits in the outgoing fiscal. The FBR has plans to increase the number of auditors per audit unit in the corporate audit cases from actual 3 to 9 in 2011-13 and 12 in 2013-14.
The number of audits per auditor unit for non-corporate cases was fixed at 7, however, achievement against this was reported at 8 for outgoing fiscal year and FBR has plans to increase the number of audits to 16 for 2011-13 and some 20 in 2013-14. The percentage or ratio of detection against realisation was fixed at 20 percent for outgoing fiscal year 2010-11; however, realisation was reported at 38 percent, the FBR has decided to maintain this ratio at 20 percent in medium term 2011-14, the report added.