Daily Times

KARACHI: Tax professionals on Thursday said Directorate General of Internal Audit (DGIA) is directly sending notices to taxpayers asking about the information which already have been filed by them (taxpayers) in tax returns.

“These notices are creating unrest among already compliant taxpayers and mistrust between taxpayers and revenue authorities besides extra time and efforts needed by them for making compliance of notices”, said Abdul Aziz Tayabani, President Karachi Tax Bar Association (KTBA).

In a letter to Member (Legal), Federal Board of Revenue (FBR), Dr. Muhammad Tariq Masood, the KTBA said that taxpayers are being served notices from the DGIA requiring information which they have already filed online at the time of filing of their tax returns or filed with field officers during proceedings by tax authorities.

Earlier this year, KTBA invited Rehmatullah Khan Wazir, the then Member IR- Operations and Hafiz Muhammad Ali Indhar, the then Member Legal. During the meeting, one of the issues discussed was relating to the notices being issued under section 176 of the Income Tax Ordinance, 2001, by the Office of DGIA and the KTBA members requested to issue necessary instructions to the DGIA to avoid issuing such notices directly to the taxpayers.

The Members of FBR during the meeting had kindly agreed to KTBA’s request and had assured that such notices will not be issued in the future. It was also agreed to make appropriate amendment in the S.R.O. 660(I)/2005 dated 3oth June, 2005, if required.

But, KTBA has been informed by its members that the notices are still being issued by the DGIA to taxpayers seeking information for last five years such as returns, wealth statements, complete bank statements etc.

President KTBA requested the Member (Legal), FBR to look into the matter and issue necessary instructions to the DGIA to approach respective field offices to obtain information of taxpayers for the purpose of inspection/investigation and not to issue notices directly to already compliant taxpayers.

“We at KTBA are of the view that these information cannot be asked from the office of DGIA from the taxpayers directly and the same can only be asked from the concerned officers holding jurisdiction”, concluded Tayabani.

Published in Daily Times, August 18^th 2017.