FBR unveils E-Audit System

ISLAMABAD: To facilitate taxpayers, the Federal Board of Revenue (FBR) has unveiled ‘E-Audit’ implementing online audit meetings, abolishing the need to attend a hearing by going to tax offices or FBR Headquarters.

Under the new regulation, the board will conduct meetings through electronic means, including video links or any other facility stated by the authority.

In addition, the board has invited various stakeholders to share inputs within 15 days to amend the Income Tax Rules, 2002, after issuing SRO 636(I)/2021.

The cases selected for an online audit will be processed under the ‘Automated Case Selection System’, issuing notices through IRIS to the taxpayer chosen for the audit. On the other hand, the Automated Case Selection System will compile a list of all available Inland Revenue officers to whom the cases can be assigned, which will serve a notice specifying the reasons for selecting his claim for audit.

Furthermore, a list of the cases marked across the jurisdiction will also be generated for the concerned Commissioner IR.

The taxpayer will be bound to produce records and documents, including books of accounts maintained under Income Tax Ordinance, 2001 through IRIS or electronic data carrier notified by the Board.

The assigned Inland Revenue officer can request for a personal hearing, made through IRIS, and allowed in given Jurisdiction. The hearing can only be conducted exclusively through video links from the private computer system or any system present at the nearest Tax Facilitation Centre, situated at the premises of the different Tax Offices.

The assigned Inland Revenue officer is directed to close the case once fully satisfied. However, in case of any discrepancy, the designated officer is required to compile a report consisting of audit observations/ findings and forward it to the taxpayer through IRIS and Automated Case Selection System simultaneously.

The case will then be reassigned to an Adjudication Officer across the jurisdiction through the Automated Case Selection System for tax assessment under section 122, including the imposition of penalty and default surcharge following sections 182 and 205 of the Ordinance if required, as per the audit report prepared.

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