ISLAMABAD (April 08 2004): The Central Board of Revenue (CBR) has directed all Regional Commissioners of Income Tax (RCITs) to select 5 percent income tax returns of non-corporate sector and 20 percent of the corporate sector for audit of the tax year 2003.
Sources told Business Recorder here on Wednesday that the CBR has given deadline of April 15, 2004, to the commissioners of income tax for initial review and selection of returns for audit.
In this connection, the CBR has given the go-ahead signal to the commissioners to start examining corporate returns for tax year 2003 and give reasons for rectification or inadmissibility of the income tax returns.
The CBR has directed RCITs that prior to selection of corporate cases for audit for tax year 2003, the previously passed assessment orders should be thoroughly examined.
Following is the text of the directive pertaining to corporate returns:
“Before any corporate cases are selected for audit for tax year 2003, assessment orders passed earlier under normal law be revisited for identifying the type of additions which could not stand the test of appeal, so that such cases are not selected for audit.”
This audit procedure would not be applicable for the units operating under Large Taxpayer Unit (LTU), Karachi.
Sources said that the CBR has given free hand to Director General, LTU, to decide on his own select the number and the type of cases for audit for tax year 2003 within the parameters, by April 15, 2004.
The cases proposed to be selected for audit would be reviewed by commissioners for identifying features to enable development of uniform parameters at national level, sources added.