Access to ST taxpayers' record to external auditors: FBR, AGP fail to resolve issue

The Federal Board of Revenue (FBR) and Auditor General of Pakistan (AGP) have still not resolved the controversial issue of providing access to the sales tax record of registered taxpayers by FBR to the external auditors of the AGP.
Sources told Business Recorder here on Wednesday that the issue came to light in a recent meeting on the audit related issues convened at the Committee Room of Revenue Receipts Audit Wing which was attended by officials of Revenue Receipt Audit and FBR.
During the meeting, the long outstanding controversial issue of providing access to the audit of the sales tax record maintained under the Sales Tax Act, 1990 came under discussion. The issue is whether the officers of the Directorate General of Revenue Receipt Audit (DRRA) are not legally empowered to directly approach the registered taxpayers of the Federal Board of Revenue (FBR) for obtaining sales tax records. Both the FBR and the officials of the Revenue Receipt Audit (RRA) presented their viewpoint elaborately but there was no agreement on this issue. Accordingly, it was agreed that this difference of opinion would be resolved through Law and Justice Division or the Supreme Court.
Sources said that the Director General Audit Customs & Petroleum stated that the compliance with authority audits is held for want of soft data of custom receipts, imports, exports etc. The meeting was informed that not only Customs Audit but also ascertainment and certification of net proceeds of divisible taxes and straight transfers were held.
It was added that if the present situation prevails, the Audit will be constrained to certify receipts of the FBR as required under Article 260 read with Articles 160 and 171 of the Constitution, 7th NFC Award and AGP's Ordinance. This situation may lead to Qualifications or Disclaimer of receipts of the FBR. The DG Audit added that soft data being requisitioned is maintained by the FBR/Pakistan Revenue Automation Limited (PRAL) and this was used to be provided to the Audit in the previous years.
But this year, the access to the Audit has been denied by the concerned wings and PRAL during, visits of audit teams with implied statement that Legal Wing of the FBR has advised in this regard. The Member Legal FBR joined discussion and stated that his wing has not given any instructions, except for record of sales tax registered persons, adding that he has no objection in this regard. He promised that he would take up the matter with the concerned quarters going back to FBR and would facilitate provision of the requisite soft data and record to the Audit without further delay.
Sources said that next to this, FBR Member Legal stated that if the FBR raises a demand accepting an audit para of the audit report, that audit observation should be settled and the Audit should not pursue its recovery or status in case the taxpayer goes in appeal against such assessment/demand.
The FBR representative was told that an Audit Report on putting signatures thereon by the AGP becomes the property of the Parliament and is out of the ambit of the Audit. Years back, in 80s, such a decision was taken after a mutual agreement between the FBR and the Audit but the Public Accounts Committee (PAC) and the Finance Committee of the National Assembly did not endorse the decision and it had to be reversed. The Deputy Auditor-General (RRA) remarked that such paras would, however, be bifurcated into different categories in the Audit Brief for the PAC to appreciate efforts of the FBR in this regard.