ISLAMABAD: The Federal Board of Revenue (FBR) is preparing to present a comprehensive report along with breakup of the receivables from different kinds of clients; commercial and industrial before the Public Accounts Committee in the upcoming meeting.
Receivables are increasing day by day because of the delayed judgments in the pending case with relevant courts. In this regard, FBR’s relevant wing is compiling data from the field formations and large taxpayers’ units and legal wings. The report is likely to be given final touches on Monday because the meeting is scheduled to be held on coming Tuesday. PAC in its meeting held in the beginning of current month directed FBR to furnish with a detailed report on this issue.
A source at FBR’s Taxpayers’ Audit Unit told Customs Today that PAC would also discuss the detailed report of the audit on decrease in tax collection by FBR from tobacco manufacturing industry in the light of previous.
The previous report stated that tax system in Pakistan was operating on self-assessment basis aimed at promoting voluntary-compliance, documentation and self-policing and tax audit was an effective instrument of control with the FBR through which compliance level is monitored.
“Through audit, the FBR checks whether a registered person/taxpayer has correctly determined his tax liability, deposited due tax in the national exchequer and is making adjustments of input tax etc, to which he is legally entitled,” the source added, saying that in order to safeguard the government’s interests, FBR had established a central risk based and automated Tax Audit Management System (TAMS), which was constantly reviewed and improved.