Income & Sales Tax Audit
In Pakistan, income and sales tax audits are conducted by the Federal Board of Revenue (FBR) to ensure that individuals and businesses comply with the tax laws and regulations.
An income tax audit is a review of a taxpayer’s financial records and tax returns to ensure that the reported income, deductions, and credits are accurate and in compliance with the tax laws. The FBR selects taxpayers for audit based on various criteria, including risk assessments and random selection.
A sales tax audit, on the other hand, is conducted to ensure that businesses are accurately reporting their sales and collecting the appropriate amount of sales tax from their customers. Sales tax audits are also conducted by the FBR, and businesses can be selected for audit based on various factors, including their size, type of business, and risk assessment.
During an audit, the FBR will typically review a taxpayer’s financial records, including bank statements, receipts, invoices, and other relevant documents. If any discrepancies or inconsistencies are found, the FBR may request additional information or documentation and may also impose penalties and fines for non-compliance.
It is important for taxpayers to maintain accurate and complete financial records and to comply with all tax laws and regulations to avoid potential penalties and fines.
That the TCTS manager taxation & audit present the case before tax authorities; reply and defend all quarries raised by assistant/deputy commissioner Income tax till the final assessment order.