The Federal Board of Revenue (FBR) has issued over one million notices to income tax and sales tax registered persons and entities having turnover of Rs. 100 million or above during 2022 under the enforcement drive on a national level.
According to the FBR report on enforcement measures for 2022, the Audit Policy, 2020 for Tax Year 2019 is under process in view of the experience obtained from the past audit policies. In addition to that, the wing also monitors audit activities carried out in the field formation throughout the year.
So far, more than 1 million notices have been issued till June 2022 to Income Tax and Sales tax registered Persons/Entities having turnover Rs. 100 million and above in order to enforce compliance against different sections of the Income Tax Ordinance and Sales Tax Act.
The report revealed that the number of income tax return filers for TY 2020 has crossed 3 million. The FBR has embarked on a plan to integrate all sales outlets of tier-1 retailers with FBR’s central computerized system.
Under the plan, the FBR has decided to implement a Track and Trace System for specified goods/ products i.e. tobacco, cement, sugar, fertilizers and beverages imported into or manufactured in Pakistan. e. Assessment & Processing (A&P) Units:
Sectorial analysis of huge business concerns has been conducted across the country by Assessment & Processing Units in all field formations of the IRS. Sectors like cement, sugar, cotton and tobacco remained under focus.
In order to reduce litigation, the FBR is encouraging alternate dispute resolution mechanisms, agreed assessment in appropriate cases and out-of-turn hearings by appellate forums in cases involving higher amount of revenues.
The Investigation & Prosecution (I&P) Units have taken legal actions (attachment of properties, arrests and seizures) has been made against huge tax defaulters to create deterrence against tax evaders, FBR added.
