KCCI opposes FBR audit policy 2016

Terms it attempt to harass tax payers, calls for exemption after audit for 3 years.

KARACHI: Expressing disappointment over the recently approved ‘FBR Audit Policy 2016’, Karachi Chamber of Commerce and Industry (KCCI) President Shamim Ahmed Firpo termed it as ‘yet another attempt’ to harass taxpayers  as it empowers the officers to carry out audit of those cases that have been audited last year.

In a statement issued, Firpo pointed out that in case of corporates, businesses and industrial units, the audits by the Federal Board of Revenue (FBR) involve explicit monetary burden including legal costs as well as implicit costs to businesses like diversion of time, resources, efforts and concentration away from core business activities.

“Karachi Chamber strongly opposes the idea of conducting re-audit of businesses the very next year under the new parameters as defined by the new audit policy,” he added.

He suggested that the audit once done should be exempted for at least three years so that businesses may be spared to perform business activities smoothly.

The KCCI president feared that all cases of commercial importers, who are paying 3% value added sales tax, would also be exposed to audit even though they have already been subjected to taxes at the import stage.

He also criticised FBR’s decision to take all national tax number (NTN) holders, salaried person and even pensioners into the audit-net under the new Audit Policy 2016.

He reiterated that the FBR does not even have the capacity to conduct audits at such a vast scale adding that it is unfeasible to do so.

Published in The Express Tribune, December 1^st, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.