Federal Board of Revenue (FBR) has restrained its field formations from initiating separate audit of withholding taxes in cases, which are already being audited under section 171 or section 214C of Income Tax Ordinance, 2001; it was learnt here on Thursday. According to sources, the decision was made during the Board-in-Council meeting held in September.
They said that the board had received numerous complaints stating that once the proceedings in cases selected for audit under section 177 of the Ordinance by the commissioners of Inland Revenue were concluded, separate proceedings for audit of withholding tax under section 166 of the Ordinance were initiated.
Resultantly, the taxpayers have to resubmit same record to different officers, reflecting poor management of field formations. The board in order to avoid inconvenience issued instructions and restrained field formations from initiating separate audit of withholding taxes in cases, which are already being audited under section 171 or section 214C of the Ordinance, they maintained.
The field formations were also asked not to summon taxpayers again for audit of taxpayers' compliance as per provisions of law relating to withholding taxes especially when the cases of taxpayers were already being audited under section 214C or section 177 of the Ordinance for the same tax year, sources said.