COMPLETION OF TAX AUDIT PROCESS
In view of the August deadline for the completion of tax audit process, which was mutually agreed between the ICAP and the FBR, a meeting of the ICAP – FBR Coordination Committee, was held at Lahore on August 23, 2010, to discuss the progress/status of the composite tax audit, outsourced to the QCR rated firms of Chartered Accountants, by the FBR.
The committee noted with concern that only very few draft audit reports have been received by the FBR todate. The committee was also apprised of the problems being faced by the Members in the process of tax audit and discussed in detail the various challenges for completion of the same.
After considering the above matters the ICAP- FBR Coordination Committee has agreed to, as under:
- Tax audit cases where field work is in progress, the firms should submit the Audit Report to the respective Commissioners by the 31st August 2010. However, in cases where field work was started late, the firms are requested to submit Audit Report latest by September 7, 2010. However, where the compliance to the above dates is not possible they are requested to write a letter to the Commissioner giving specific reasons for delay and tentative date for submission of report with a copy to the Directorate Technical Services (DTS), ICAP House, Karachi.
- In cases where field work could not be started due to non-cooperation/ non traceability of the taxpayers or insufficient /no-information of taxpayers’ record, firms are requested to write to the respective Commissioners to initiate penal proceedings against the tax payer before 31st August, 2010 with copy to DTS, ICAP House, Karachi.
- In cases where payment of 50% advance is outstanding, FBR has assured disbursement on priority basis and the Members are requested to proceed with the audit. The Members are however requested to remind the relevant Commissioner about the outstanding fee with copy marked to DTS, ICAP House, Karachi.
Members are requested to make compliance of the above, at the earliest.