In order to ensure ease of doing business, the Federal Board of Revenue Pakistan has been advised by the business community to shun the conduction of multiple audits of the taxpayer in a year.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), in its proposals for budget 2020/2021 submitted to the Federal Board of Revenue Pakistan said that registered taxpayers receive notices of multiple audits in a year such as Income Tax audit under Section 177 of the Income Tax Ordinance 2001, Withholding Tax audit under Section 161 of the Income Tax Ordinance 2001; Sales Tax audit under Section 25 of the Sales Tax Act 1990.
Also, multiple notices of amendments in assessments under Section 122 of the Income Tax Ordinance 2001 and under Section 111 of the Income Tax Ordinance 2001 are received by the taxpayers for providing the explanation of sources.
This requirement of multiple audits create unease to doing business and also, un-necessary problems are created for the taxpayers.
It has been recommended by the FPCCI that the concept of multiple audits should be done away with and there should be provided an alternate concept of a composite audit of registered taxpayers.
It has also been suggested by the FPCCI that after being consulted with all stakeholders, new audit parameters should be enforced.