The Federal Board of Revenue (FBR) has been empowered to appoint special audit panels comprising officers of Inland Revenue, firm of chartered accountants, firm of cost accountants or any other person as approved/appointed by the Board. Under an income tax circular, the FBR here on Saturday explained the new concept of audit by special audit panels introduced by inserting sub-sections (11) to (17) in section 177 of the Ordinance.
The Board is empowered to appoint special audit panels comprising an officer or officers of Inland Revenue, a firm of chartered accountants, a firm of cost accountants or any other person as appointed by the Board. The special audit panel shall be headed by an officer of Inland Revenue. The powers of sections 175 and 176 of the Ordinance shall only be exercised by an officer or officers of Inland Revenue in the panel and authorized to exercise such powers by the Commissioner.
The proceedings of the panel shall continue even in the absence of a member but not in the absence of the chairman. Functions performed by the members of the panel for conducting audit shall be considered as being performed by the panel. The purpose for collaborative audit is to utilize the expertise of chartered accountants, cost and management accountants and other sector specialists in conducting audit. Hence, the participation of experts would strengthen audit in its essence, the procedure and legal aspects are to be steered by officers of Inland Revenue. Corresponding changes have also been made in sections 121, 176, 207, 210 and 211.
The FBR said that clause (ba) of sub-section (6) of section 114, envisages approval of the Commissioner in writing for revision of return. Through the Finance Act, 2015 it has been provided that such approval shall not be required if the return is revised within 60 days of filing of the original return. In cases where approval of Commissioner is required for revision and no such order has been made within sixty days, approval shall deem to have been granted and the condition specified in clause (ba) of sub-section (6) of section 114 shall not apply, the FBR added.