The Federal Board of Revenue (FBR) has approved the Audit Policy 2019 pertaining to tax year 2018. The policy shall apply to persons or classes of persons falling under all or any of the tax statutes i.e. Income Tax Ordinance, 2001 (ITO,2001) Sales Tax, 1990 (STA, 1990) and Federal Excise Act, 2005 (FEA, 2005). Computer balloting under the approved policy will be conducted soon.

 

Audit Policy has excluded following categories of taxpayers from selection.

 

Income Tax

 

  • All cases already selected for by the Commissioner IR and Director Intelligence & Investigation IR under Section 177 and in consequence of action under Section 175 of ITO, 2002.
  • All cases where income chargeable to under the head salary and/or pension exceeds 50% of the taxable income, except cases having business income. Directors of the companies do not qualify for this exclusions.
  • All cases where entire income is covered under Final Tax Regime (FTR).
  • All cases where declaration has been made under the Voluntary Declaration of Domestic Asset Act, 2018
  • All cases where declaration has been made under the Asset Declaration Ordinance, 2019.

 

Sales Tax and Federal Excise Duty

 

  • All cases already selected under Section 25 and 38 of STA, 1990 and Section 45 and 46 of FEA, 2005 by the Commissioner IR and Director Intelligence & Investigation IR for tax periods corresponding to accounting period adopted for the purpose of returns of income under the ITO, 2001 for the Tax Year 2018 provided that where only a part of the said accounting period has been audited already, the relevant authority may select the remaining period for audit.
  • All cases where declaration has been made under the Voluntary Declaration of Domestic Asset Act, 2018.
  • All cases where declaration has been made under the Asset Declaration Ordinance, 2019.
  • Federal, Provincial and Local Government Departments.

 

 

The Audit Policy 2019 is being attached herewith for your information. We shall be pleased to provide any further clarification on this if you so desire.

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