Historical Perspective: Because of the way that 2001 intentional consistence for submitting of profits has been the essential cognizance of Federal Board Of Revenue (FBR). Self evaluation and Amnesty Schemes had been brought by method for FBR from time to time. FBR has generally trusted citizens for his or her presentations. Conventional self appraisal plot has however required powerful expense review construct absolutely with respect to risk administration systems in request to advance assessment lifestyle and consistence to impose lawful rules. To acquire this end numerous audit rules had been discharged by method for FBR before. For the reason of audit, choice of cases transformed into usually made through arbitrary survey in the past. The ‘Audit strategy’ 2016 for Tax  year 2015, be that as it may, conveyed a change in outlook from the past. Its acknowledgment was realigned from arbitrary to parametric decision andfrom aeneral to danger based strategy. This approach limited odds of determination of consistent citizens following in sparing the rare sources and building the certainty of the citizens in the Audit framework. This new practice in taxpayers’ audit has advanced consistence with the present tax laws. The Audit Policy, 2017 for Tax Year 2016, has been set up on practically identical follows to guarantee manageability of the hazard basically based audit decision by methods for FBR. The motivation behind such review is to make prevention towards rebelliousness with charge laws through deliberate examination and investigation of accountinf record of the taxpayer. in any case, so you can encourage the citizens, it’s been resolved through the Board that the instance of the taxpayer when chosen for audit will never again be chosen for audit for ensuing  two duty years underneath stage 214C of the benefits Tax Ordinance, 2001, under section 72B of the business Tax Act, 1990 and 42B of the Federal Excise Act, 2005 respectively. For such reason base year may be Tax year 2015 for Income Tax and Tax periods July 2014 to June 2015 for sales Tax and Federal Excise commitment.
Parameters:
  • Income Tax
Under section 214C (1A) the parameters are not to be disclosed.
  • Sales Tax
Below mentioned are the rsik parameters that have been intented by the Board Of Revenue(FBR) for selecting cases for audit for Tax Periods July 2015 to June 2016 under clause (i) of sub-rule (2) of rule 44A of the Sales Tax Rules, 2006.
  • Sales Tax (Corporate and Non-Corporate)
Following are the parameters:
  1. Decrease in value of provisions is more prominent than 10% over a year ago;
  2. Reliable abatement in output tax input tax proportion over most recent three years;
  • Reduction in proportion of taxable supplies to add up to provisions by at least 10% as contrasted with earlier year;
  1. Non-filer, nil-filer or invalid filer for over a half year in the year in the event that the Enrolled Person is demonstrating any turnover in income tax form of the relating period;
  2. Makers indicating esteem expansion of under 10%;
  3. Where over 30% buys are from “unregistered people”.
  • Where over 30% deals are to “unregistered people”.
  • Increment in convey forward of input tax and diminishment in deals by edge of 10%.
  • Federal Excise
Below mentioned are the rsik parameters that have been intented by the Board Of Revenue(FBR) for selecting cases for audit for Tax Periods July 2015 to June 2016 under clause (i) of sub-rule (2) of rule 73A of the Federal Excise Rules, 2005.
  1. Decrease in value of provisions is more prominent than 10% over a year ago;
  2. Reliable abatement in output tax input tax proportion over most recent three years;
  • Reduction in proportion of taxable supplies to add up to provisions by at least 10% as contrasted with earlier year;
  1. Non-filer, nil-filer or invalid filer for over a half year in the year in the event that the Enrolled Person is demonstrating any turnover in income tax form of the relating period;
  2. Makers indicating esteem expansion of under 10%;
  3. Where over 30% buys are from “unregistered people”.
  • Where over 30% deals are to “unregistered people”.
  • Increment in convey forward of input tax and diminishment in deals by edge of 10%.
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