During the countrywide enforcement drive in 2022, the Federal Board of Revenue (FBR) issued over one million notices to income tax and sales tax registered persons and companies with a turnover of Rs. 100 million or more.
According to the FBR report on enforcement actions for 2022, the Audit Policy, 2020 for Tax Year 2019 is under development based on the lessons learned from previous audit policies. In addition, throughout the year, the wing oversees audit actions carried out in the field formation.
So far, approximately 1 million notifications have been issued to Income Tax and Sales Tax registered Persons/Entities with a turnover of Rs. 100 million or more till June 2022 in order to ensure compliance with various sections of the Income Tax Ordinance and Sales Tax Act.
According to the data, the number of income tax return filers for TY 2020 has surpassed 3 million. The FBR has begun work on a plan to link all tier-1 retailer sales outlets with the FBR’s central computerized system.
The FBR has agreed to implement a Track and Trace System for selected goods/products, such as tobacco, cement, sugar, fertilizers, and drinks, as part of the strategy. Units of Assessment and Processing (A&P):
Assessment and Processing Units in all field formations of the IRS have completed sectorial analyses of large corporate concerns across the country. Cement, sugar, cotton, and tobacco remained in the spotlight.
To reduce litigation, the FBR promotes alternative dispute resolution processes, agreed assessment in appropriate circumstances, and out-of-turn hearings by appellate forums in cases involving larger amounts of income.
The Investigation and Prosecution (I&P) Units have initiated legal proceedings (attachment of properties, arrests, and seizures) against large tax defaulters in order to establish a deterrent against tax evaders, according to the FBR.
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