ISLAMABAD: The Federal Board of Revenue (FBR) has not approved the draft audit policy for the Tax Year 2019 due to the postponement of the 4th Board-in-Council meeting (2022-23) on Tuesday.

The meeting of the 4th Board-in-Council (2022-23) was scheduled to be held on Tuesday but it was postponed.

The agenda item of approval of the draft audit policy for the Tax Year 2019 has been deferred and was not presented by FBR Member Audit before the Board-in-Council meeting on November 22. In view of the Departmental Accounts Committee (DAC) meeting, FBR Member Audit and Accounting has not participated in the 4th Board-in-Council meeting which was later deferred for the next date.

Audit exemption: FBR to notify delegation of powers to IR commissioners

Under the Finance Act, 2022, the provisions of sections 177 and 214C shall not apply to a person whose income tax affairs have been audited in any of the preceding four tax years: Provided that the Commissioner may select a person under section 177 of the Income Tax Ordinance, 2001 for audit with approval of the Board, it added. The notification for the delegation of powers for clause (105A) of the Part-IV of the Second Schedule of the Income Tax Ordinance, 2001 requires approval of the Board-in-Council.

The section 105A of the Income Tax Ordinance 2001 says, “The provisions of section 177 and 214C shall not apply to a person whose income tax affairs have been audited in any of the preceding four tax years: Provided that Commissioner may select a person under section 177 for audit with approval of the Board.”

Copyright Business Recorder, 2022