Full Fledge Tax Audit Rights of ACMA's

Full Fledge Tax Audit Rights of ACMA's - Printable Version

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Full Fledge Tax Audit Rights of ACMA's - awaisaftab - 12-29-2009

Through Finance Amended Act,2009 the Federal Government amended the sub section (8) of section 177 of Income Tax Ordinance,2001. Now the ACMA's have the full fledge audit right to conduct income tax audit of any entity. Althogh through ITO,2001 much rights of audit verification and attestation were available but there was a need to amment section 177(8) of Income Tax Ordinance . This section deals with the power of the Board (FBR) regarding appointment of an auditor to conduct the audit of affairs of any person.

Here the word "Person" means as it has been defined under section (80) of ITO,2001.
Definition of "Person" as per ITO,2001, is as follows

The following shall be treated as persons for the purposes of
this Ordinance, namelyâ
(a) An individual;
(b) a company or association of persons incorporated, formed,
organised or established in Pakistan or elsewhere;
© the Federal Government, a foreign government, a political subdivision
of a foreign government, or public international
organisation.

See Page No 21 on following link

http://http//www.fbr.gov.pk/legal/2009Finance(Amendment)Ordinance.pdf

- hshamsi - 12-29-2009

awais

new info thnx for the link, hope this to be amended effectively in the ITO 2001 as well (as still the ITO is amended upto Aug 15th, 2009), bt mind if i correct u, the audit right which u've referred are Tax Audit rights of ACMA's as per my understanding.

ref ITO 2001 (before the finance amendment ordinance 2009 of ACMA's tax audit rights )

177(8) The 5[Board] may appoint a firm of Chartered Accountants as defined under the Chartered Accountants Ordinance, 1961 (X of 1961), to conduct an audit of the income tax affairs of any person 6[or classes of persons selected for audit by the Commissioner or by the Board] and the scope of such audit shall be as determined by the 7[Board] on a case to case basis.

regards

- awaisaftab - 12-29-2009

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by hshamsi
 awais

new info thnx for the link, hope this to be amended effectively in the ITO 2001 as well (as still the ITO is amended upto Aug 15th, 2009), bt mind if i correct u, the audit right which u've referred are Tax Audit rights of ACMA's as per my understanding.

ref ITO 2001 (before the finance amendment ordinance 2009 of ACMA's tax audit rights )

177(8) The 5[Board] may appoint a firm of Chartered Accountants as defined under the Chartered Accountants Ordinance, 1961 (X of 1961), to conduct an audit of the income tax affairs of any person 6[or classes of persons selected for audit by the Commissioner or by the Board] and the scope of such audit shall be as determined by the 7[Board] on a case to case basis.

regards
<hr height="1" noshade id="quote"></blockquote id="quote">

Yes, obvisously I am talking about Income Tax Audit Rights of ACMA's. The caption of the thread also reveals the fact very clearly.

- kamranACA - 12-30-2009

Congrats to all ACMAs engaged in professional practice.

Regards,

Kamran.

- Mujahid - 12-30-2009

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by kamranACA
 Congrats to all ACMAs engaged in professional practice.

Regards,

Kamran.

<hr height="1" noshade id="quote"></blockquote id="quote">

Kamran bhai, Pehle tax to parhaein. Phir audit bhi kar leinge [(]

- hshamsi - 12-30-2009

awais

a sentence of ur post is a bit misleading ( espacially for a layman )

"This section deals with the power of the Board (FBR) regarding appointment of an auditor to conduct the audit of affairs of any person."

thats y i pointed out.

congrats from my side too, n bst regards

- awaisaftab - 12-31-2009

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by hshamsi
 awais

a sentence of ur post is a bit misleading ( espacially for a layman )

"This section deals with the power of the Board (FBR) regarding appointment of an auditor to conduct the audit of affairs of any person."

thats y i pointed out.

congrats from my side too, n bst regards
<hr height="1" noshade id="quote"></blockquote id="quote">

The majority of members of the Forum belongs from recognized bodies of professional accountants. So lay men are not concerned. Anyhow thaks a lot.

- hshamsi - 12-31-2009

awais

law ki language achay achoon ko ghuma deti ha, kia khayal hay ?! )

bst regards

- awaisaftab - 12-31-2009

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by hshamsi
 awais

law ki language achay achoon ko ghuma deti ha, kia khayal hay ?! )

bst regards
<hr height="1" noshade id="quote"></blockquote id="quote">

You are right interpretation of law is the most difficult task.