ISLAMABAD: The Federal Board of Revenue has introduced ‘Comprehensive Withholding Monitoring & Audit Strategy’ 2017-18 for boosting revenue collection efforts of the field formations for the ongoing fiscal year.
The key sectors, including telecom, banks, oil/gas/power, tobacco, textile, cement, sugar, cotton ginners and flour mills would fall under the new strategy.
The strategy was developed by the team of FBR Member Inland Revenue Operations Khawaja Tanveer Ahmad and was enforced it on national level to streamline withholding tax collection in 2017-18.
The FBR has communicated the comprehensive withholding monitoring & Audit Strategy for enhancement of revenue during 2017-18 to all the Chief Commissioners Inland Revenue of Large Taxpayer Units (LTUs), Regional Tax Offices (RTOs) and Corporate Regional Tax Offices (CRTOs).
According to the FBR, a comprehensive Withholding Monitoring & Audit Strategy (2017-18) has been devised for strengthening the ongoing revenue enhancement efforts of the field formations, for the current fiscal year.
The said strategy comprises of the salient features including Quarterly Withholding Audit Plan (QWAP) by each field formation one week before the beginning of new quarter.
The strategy also included periodic monitoring/audit of Excise and Taxation Department, property registration/recording authorities/housing societies, national saving centre(s)/post office(s) and Discos/CPPA, to ensure timely collection of withholding taxes as per prescribed tax rates (for filers/non-filers). It envisages quality desk audit(s) of at least 10 WH statements per month, of potential revenue yielding entities by each unit incharge, to be submitted to the CIR concerned.
The strategy also includes proactive monitoring of procurements (i.e. key tender notices published in the newspapers regularly intimated by the Board); special monitoring of payments by non-profit organization(s) (NPOs); pro-active withholding monitoring of all ongoing projects/programmes including assignment account (development/non-development), revolving fund accounts, provincial ledger accounts (PLAs), special drawing accounts (SDAs) and maintenance of database of their budget allocations, releases, expenditure and tax deductions/deposits thereof with risk-based, periodic audit of at least 2-3 entities (as assigned) per quarter; proactive monitoring of salaries disbursements especially concerning large private and corporate sector entities including statutory authorities/autonomous bodies; ensure effective withholding monitoring of key sectors such as telecom, banks, oil/gas/power, tobacco, textile, cement, sugar, cotton ginners, flour mills and others; minimum 10 percent recovery out of net collectable WH demand on monthly basis; recovery of remaining four-fifth of sales tax (MOST-WH) from government vendors; addressing the shortfall identified in revenue spinning sections as per monthly DRS data circulated by exploring revenue potential in other withholding sections; awareness workshops for education of key withholding agents/government DDOs and quarterly conference of commissioners (WHZs/others) and periodic visits by Board team. Considering these features as included in the strategy, all RTOs/LTUs have been requested to prepare activity plan to ensure smooth, timely implementation of the strategy for maximum exploration of the revenue potential.