29/06/2017
The concealment of the parameters for selection of cases for Income Tax audit by the FBR was challenged before the Honourable Peshawar High Court, Peshawar, where it was argued by our senior partner, Mr. Sajid Hotiana that once a taxpayer had been selected for audit by the FBR on the basis of parameters as compared to the previous random mode of selection, it was warranted under law that such parameters be disclosed to the taxpayer so as to enhance the taxpayer's confidence and ensure compliance by the taxpayer with the fiscal obligations of the Country. The Honourable Court was although pleased to uphold the right of FBR to conceal the parameters in light of Sub-Section (1A) of Section 214C of the Income Tax Ordinance, 2001, however, the Honourable Court directed FBR to revisit its audit policy on the gorund that such concealment of the parameters was in conflict with the Board's approach to increase confidence of the taxpayers as enunciated in the Audit Policy 2016.