As a responsible citizen, paying taxes is our legal obligation towards our country. Every year, the Federal Board of Revenue (FBR) selects a number of tax cases for audit. The audit process is conducted to ensure that the taxpayers have filed their tax returns correctly and have not committed any illegal activity. In this article, we will discuss the audit process of FBR for the fiscal year 2021-22 and shed some light on the selected sectors for audit cases.
Audit Process of FBR
The FBR conducts the audit process through computerized balloting, as mentioned in section 214c of the Income Tax Ordinance 2001. The balloting can be random or parametric, depending on the discretion of the Board. The Board may disclose the parameters used for selection or keep them confidential.
It is important to note that the FBR has not yet selected cases for audit for the fiscal year 2021-22. The reason behind this is that the Board has opened so many cases on a verbal account that no policy was announced for the outgoing year. In fact, the Board has opened audits of five years in five months, which is quite alarming.
However, the selected cases were evaluated on merit and closed after due deliberation, and no legal contravention was found. The FBR employees are under stress as the bureau sets unrealistically high targets. As a result, mid-career FBR officers opt for carrying out foreign missions. The FBR desk audits are up to the mark, but the systems are not updated. This leads to the creation of fake demands, which are then challenged and overturned by the courts. This exercise results in the loss of precious taxpayers’ money.
Selected Sectors for Audit Cases
For the fiscal year 2021-22, the FBR has selected specific sectors for audit cases. These sectors include the oil sector, edible oil, automobiles, aerated water manufacturers, beverages, traders of electronics, cement, and housing societies.
The audit process for these sectors is conducted to ensure that the taxpayers have filed their tax returns correctly and have not committed any illegal activity. The FBR has a team of experts who are responsible for conducting the audit process professionally and transparently.
In conclusion, paying taxes is a legal obligation that we owe to our country. The audit process of the FBR is conducted to ensure that taxpayers have filed their tax returns correctly and have not committed any illegal activity. The selected sectors for audit cases for the fiscal year 2021-22 include oil, edible oil, automobiles, aerated water manufacturers, beverages, traders of electronics, cement, and housing societies. It is important to note that the audit process should be conducted transparently and professionally to maintain the trust of taxpayers in the FBR.