Pakistan to Conduct 77 500 Audits
September 26, 2014 Taxation in Pakistan
ISLAMABAD – Tax authorities in Pakistan are attempting to stamp out tax evasion by conducting a significant number of tax audits on businesses and individuals around the country.
More than 77 500 taxpayers in Pakistan have been randomly selected to have their tax returns audited as part of the government’s annual random audit selection process, which took place on September 25th.
The 75 000 taxpayers were selected across six different categories, with 1 876 audits of corporate income tax filings, 63 050 audits of individual income tax filers, 1 410 audits for sales tax by corporate entities, 11 095 audits of sales tax from individuals, 45 audits of corporate filers of federal excise duties, and 24 audits of federal excise tax by individuals.
The number of audits to be conducted this year is a significant increase over previous periods, as last year only 41 727 cases were selected.
According to the FBR, the random audit selection is a significant positive influence towards tax compliance, as the audits may be conducted on any taxpayer, regardless of their business activity or the size of their tax obligations.
Photo By: Simon Cunningham