Central Board of Revenue processes hundreds of sales tax returns erroneously

ISLAMABAD (December 03 2002) : The Central Board of Revenue (CBR) has processed hundreds of sales tax returns erroneously causing huge revenue loss to the national kitty.

The 'Processing Divisions' of the collectorates were unable to thoroughly scrutinise the returns by applying the laid down procedure to check the correct reporting of tax liabilities. This also delayed recovery of short-payment of sales tax.

The wrong processing of tax returns was detected by the computer wing of the CBR, which brought the issue to the notice of sales tax authorities.

Now, the CBR has issued instructions to all collectors of sales tax to submit report on the issue up to December 10.

According to computer department, an analysis of the sales tax returns for September 2002, shows that there have been 3654 cases in which either value of output has been suppressed or value of input has been enhanced simply by means of wrong declaration.

Similarly, in 94 cases payable tax was wrongly calculated and less tax payable was declared. Therefore, the difference in output is Rs 264.6 million and in input Rs 146.9 million. It reveals that processing division has not examined the returns thoroughly to satisfy the controls of correct return filing, the department added.

The collectors would also detect short filers and submit two statements pertaining to wrong filing through e-mail to the computer department.

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