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KTBA seeks probe into tax fraud cases through special directorate

Discussing sales tax matters at a pre-budget seminar on Friday, the tax practitioners have recommended investigations into tax fraud cases through a special directorate.

The members of Karachi Tax Bar Associations (KTBA) in the pre-budget seminar discussed various issues pertaining to sales tax laws. They highlighted the issue where jurisdiction for audit and adjudication of cases involving tax fraud as well as routine audit and assessments lies with the same officer. Further, the two proceedings require different types of skill set and approach.

It was also discussed that the same officer is responsible for conducting audit and adjudication. Lack of segregation results in inefficiency and undue harassment of law compliant taxpayers, as officers invariably include allegations of tax fraud in almost every show cause notice, the members discussed.

They proposed for the budget 2021-22 that cases of tax fraud should be investigated and adjudicated by a Special Directorate to be set up for this purpose. Moreover, if the concerned officer exercising jurisdiction over a taxpayer has determined that the taxpayer is involved in suspicious/criminal activity, then the case should be turned over to the Special Directorate.

Filed Under: Pakistan

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