FBR issues draft rules for special audit panel functioning

KARACHI: The Federal Board of Revenue (FBR) on Wednesday issued draft rules for the formation and functioning of special audit panel for conducting forensic audit of income tax affairs of any person or classes of persons.
According to the draft rules, the chairperson of the audit panel will be officer of the Inland Revenue, while other members comprise officers of the Inland Revenue, a firm of chartered accountants and a firm of cost and management accountants.
In the last budget 2015/16, the concept of special audit panels was introduced. Once the draft rules were implemented the audit panel will start functioning.
Under the draft rules, the panel may conduct inquiry in any case.
The rules say that in case of difference of opinion among members of the special audit panel, the audit finding of majority members would carry weight and the chairperson will proceed.
In the case of majority members do not include chairperson, then the special audit panel will send the report of difference of opinion to the commissioner to decide either to constitute new special audit panel or send the report to another officer of the Inland Revenue.
According to the draft rules the audit proceedings would include the taxpayers' record, documents, statements and difference of opinion of panel, if any. However, the taxpayers would be given opportunity of being heard under the audit.