GST audit cases to go through new ‘faceless system’

Business Recorder reported that the Federal Board of Revenue (FBR) will now carry out sales tax audits of selected cases through a new faceless system, as set out in a notification released by the board. Under the notification, the audit wing will handle audits under section 25 of the Sales Tax Act, including audits of persons picked under section 72B, along with proceedings under section 11E and related notices, information requests, penalties and default surcharges.

When a case is allocated to an audit unit, the assigned officer can issue further notices, obtain information from third parties, and ask the chief commissioner for physical verification. The officer may also seek expert help on valuation, forensic or sector matters, and record a statement through e-hearing. After weighing the explanation and any e-hearing record, the officer prepares an audit report setting out observations and grounds for turning down any reply from the registered person.

Where section 11E proceedings are needed, the officer issues a notice and forwards findings to the assessment unit. Once the audit report is issued, the audit stage ends and the file is passed to an assessment officer via automated allocation, the FBR said.