Faceless audits: FBR unveils new procedure

According to Business Recorder, the Federal Board of Revenue has introduced fresh rules governing faceless audits of taxpayers, spelling out the duties of the Faceless Audit Unit and its officers. The framework was set out in a notification the FBR issued on Thursday. Under it, the unit will handle sales tax audits under section 25, including audits of persons selected under section 72B, along with proceedings and orders under section 11E.

During an audit, a unit officer can issue further notices or requisitions for information, collect data from other persons, and ask the Chief Commissioner to arrange physical verification. Where needed, the officer may also draw on technical help from a unit or panel with valuation, forensic or sectoral expertise, and record statements through e-hearing. After weighing the explanation and any e-hearing record, the officer issues an audit report listing observations, findings and the reasons for rejecting explanations.

Once the audit report is issued, the audit function in the case is complete and the file is passed on automatically to the officer or unit handling assessment. Where section 11E proceedings are required, the unit officer issues the notice, obtains the registered person's response and forwards the findings to the Assessment Unit.