ISLAMABAD: The Auditor General of Pakistan (AGP) has urged the Federal Board of Revenue (FBR) to adopt measures to curb tax evasion via under-invoicing, misdeclaration, smuggling, inadmissible exemptions and refunds.
In a report, the AGP has told the FBR to devise a mechanism, forcing field officers for compliance of provisions of SRO-678 (1) 2004.
“Make necessary amendments in the rules for imposing exemplary penalty for non-availability of invoices and packing list in the containers,” suggested the report about the FBR’s fiscal management for the audit year 2013-14.
The report also advised the FBR to take steps against smuggling and discourage amnesty schemes.
Moreover, the report read the FBR should take action to prevent alteration in the system of Pakistan Revenue Automation (Pvt) Ltd (PRAL), established in 1994 as a small IT setup which is now one of the largest information solution providers in Pakistan with nearly 1,300 employees.
Similarly, the report also suggested the FBR to take appropriate measures to ensure production of auditable record and ensure that exemptions and concessions were granted according to law. “Clarify the matter regarding inclusion of petroleum levy in the value for sales tax, direct the field officers to assess the imported goods as per law and take up matter with ministry of commerce for modification of tree trade agreement,” the report asked the tax authority.
The audit report asked the FBR to issue instructions to field formation to abide by the law while granting licences, take steps to recover the assessed and adjudged revenue as well as ensure deposit of user ID free into government treasury.
Moreover, the FBR is also asked to issue instructions for timely disposal of confiscated goods, curb the under valuation and misclassification of imported goods, advise the field formation for early finalisation of cases of provincial assessments as well as issue instructions to field formation to pay rebate as per notified rates.
The report pinpointed audit paras for the audit year 2013-14 about financial management of the FBR involved procedural violations, including internal control, weaknesses and irregularities not considered worth reporting.