ISLAMABAD: Auditor General of Pakistan Javaid Jahangir has recommended to Federal Board of Revenue to bring National Logistic Cell (NLC) and Frontier Works Organization (FWO) under tax net by invoking Article 165 A of the Constitution of Islamic Republic of Pakistan instead of granting exemption under section 49 (4) of the Income Tax Ordinance, 2001
Sources told Customs Today that Auditor General has informed the Federal Board of Revenue that efforts were made to obtain data and auditable record from Frontier Works Organization and National Logistic Cell by involving chief commissioner Regional Tax Office Rawalpindi where jurisdiction of both these organizations fell but no response was received till the close of audit activity in November, hence audit had to rely upon the information and data only available in the form of withholding tax statements submitted by these organization.
Auditor General briefed the FBR that audit mainly relied upon the soft data of income tax returns and sales tax returns along with withholding tax statements and financial statements of the taxpayers as available on the system of Federal Board of Revenue.
Some other sources of data included hard form like withholding statements submitted by National Logistic Cell to Regional Tax Office Rawalpindi on monthly or annual basis. Auditor General suggested to Federal Board of Revenue to keep close liaison with authorities of National Logistic Cell and Frontier Works Organization for ensuring availability of auditable record.