FBR Initiates Investigative Sales Tax Audits to Combat Fraud and Increase Revenue Collection

• FBR to conduct investigative audits of sales tax cases starting from next fiscal year
• Authority granted to perform audits in instances of suspected tax fraud
• Audit officer can initiate investigative audit if tax fraud is suspected, with approval from Commissioner
• Investigative audit must be completed within ninety days of initiation
• Audit officer empowered to take actions under sections 11E and 11D of Sales Tax Act, 1990
• Concerns raised about vague and ambiguous language in proposed section 25AB
• Discretionary powers of audit officer could lead to unwarranted litigation
• Potential misuse of power and challenges for registered taxpayers
• FBR aims to strengthen enforcement of tax laws and curb tax fraud with investigative audits
• Careful oversight needed to prevent misuse of power and ensure fair treatment of taxpayers
• Clear guidelines and safeguards necessary to avoid legal complications and ensure transparency in auditing process.

Source: pkrevenue.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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