KARACHI: Karachi Tax Bar Association (KTBA) has approached Federal Board of Revenue (FBR) seeking immunity from audit for existing taxpayers subject to payment of higher tax as compared with previous year.
“It is important to note that immunity from audit and incentive have been provided under VTCS to non-compliant taxpayers, therefore, justice demands that immunity from audit, subject to higher payment of income tax as compared to previous tax year, may also be allowed to the compliant taxpayers,” Mohammad Zubair President KTBA noted in a letter sent to FBR chairman.
A number of cases have been selected for income tax audit for the tax year 2014 and notices have been served in this regard. In most of the cases, taxpayers/tax practitioners are preparing and filing the required details and documents for submission before the tax authorities.
Zubair said it was a well know fact that the audit proceedings took considerably longer time while the tax practitioners were actively preoccupied with the filing of returns for the tax year 2015 for which the date had been extended till February 29, 2016.
“If a taxpayer pays 10 percent or any other reasonable percentage more income tax for 2014 compared with the tax on declared income for the tax year 2013, audit in such cases should be closed accordingly and those who do not avail this option can be processed under normal proceedings available for the purpose of audit,” KTBA maintained.
“This will, on one hand will fetch revenue to the exchequer and on the other hand, will save the precious time of the field officers and the practitioners who are presently highly burdened with the compliance of returns/statements, monthly statements and Voluntary Tax Compliance Scheme,” the KTBA said.