KARACHI: Revenue Division vide SRO 31(I)/2016 has amended Income Tax Rules, 2002 authorizing FBR to form Special Audit Panels. The panel will conduct an audit, including a forensic audit, of the income tax affairs of any person or class of persons, and the scope of the audit would be determined by the FBR or the Commissioner of Inland Revenue on case-by-case basis.
The panel having two or more members will be headed by a chairman who will be an officer of Inland Revenue. It will comprise officials from Inland Revenue, chartered accountant firms, cost and management accountants or any other person as determined by the FBR.
The Board will invite chartered accountants or cost & management accountant firms through advertisement and determine their eligibility and remuneration on case to case basis.
The chairperson of special audit panel will specify date and time for conducting audit; supervise the proceedings of audit; issue notices to the taxpayer under audit; demand to produce records, documents, information from the taxpayer under audit and from other persons in respect of the taxpayer under audit; and ensure attendance of the taxpayer for hearing in person or through an advocate or representative.
According to the rules, audit proceedings will not be held invalid in case of absence of any member of the panel, other than chairperson.
The chairperson will consolidate audit findings for further action as deemed fit.
In case of difference of opinion among members of the special audit panel, the audit findings of majority members would carry weight.
In case the majority members do not include chairperson, then the special audit panel will send the report of difference of opinion to the Commissioner and the Commissioner may decide either to constitute new special audit panel or send the said report to another officer or officers of Inland Revenue. The subsequent audit findings would suffice for further actions.