The new Audit Policy 2016, approved by the Federal Board of Revenue (FBR) on 3 January 2017 for selection of taxpayers for audit, would also include those cases in the parametric selection process which were earlier selected for audit last year. According to the new audit policy, the audit selection will be conducted via computer ballot using a parametric basis based on 7.5% of the cases out of the total returns of Income Tax, Sales Tax and Federal Excise Duty filed for the tax year 2015 and tax periods from July 2014 to June 2015.
According to the audit policy, the persons/companies would be excluded in the balloting are included:
Income Tax:
All cases already selected for audit by the commissioners Inland Revenue under Section 177 of the Income Tax Ordinance, 2001 for tax year 2015; All cases already selected for audit by the Director Intelligence and Investigation under Section 177 of the Income Tax Ordinance, 2001 for tax year 2015; and all cases already selected for audit under Section 214D of the Income Tax Ordinance, 2001 for the tax year 2015.
Federal Excise:
All cases already taken up for audit for tax periods July 2014 to June 2015 under Section 46 of the Federal Excise Act, 2005 by the commissioners Inland Revenue. Case already taken up for audit/investigation for tax periods July 2014 to June 2015 under Section 46 of the Federal Excise Act, 2005 by the Directorate of I&I IR.
