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  • Apr 12th, 2012
  • Comments Off on Unlawful input tax, audit cases: RTOs fail to feed data into ‘TAMS’
The Regional Tax Offices (RTOs) have not properly entered the data of unlawful input tax adjustments and cases selected for audit into the Tax Audit Monitoring System (TAMS), which was necessary under the audit plan. Sources told Business Recorder on Wednesday that the issue came to light when Majid Qureshi, Director General Tax Audit Force reviewed the performance of TAMS regarding unlawful input tax adjustment and audit cases.

It was discussed that the cases have been selected for audit by field formations, but the data has not been entered into the TAMS. The progress on the unlawful input tax adjustments and cases selected for audit should be reflected through the TAMS.

Under the 'National Annual Audit Plan 2011-2012', each audit case should be entered into the Taxpayers Audit Monitoring System (TAMS), developed by PRAL in co-ordination with the Taxpayers' Audit Wing, for which apparatus has been installed in the field formations. Audits must not be initiated without first entering the relevant data into the TAMS. Any notice or communications done otherwise or any deviation from this policy guideline would be viewed seriously and Chief Commissioners must take suitable action against the delinquent officers, FBR said.

In order to complete the said audits successfully, the role of Chief Commissioners is of paramount importance. They are rightly expected not only to ensure quick disposal of audit, but also maintain a respectable level in audit quality. In addition to data entry of cases selected for audit in the TAMS, a monthly report on prescribed format regarding audits initiated, completed and the names of the officers/auditors who conducted the audits along with the amount detected and recovered (if any) may also be sent to the Board by the 5th of the following month, 'National Audit Plan 2011-2012' added. The Director General TAF informed the meeting the he had so far visited seven RTOs and observed that although the field officers were taking action and disposing off the cases selected for audit as well as the cases of unlawful input adjustment, their efforts were not visible through TAMS.

However, due to the recent interaction between TAF and the RTOs, the entry in TAMS has been considerably improved. The Director General briefly narrated the performance of Tax Audit Force during the past month. After intense deliberations all the participants evolved a consensus on one point that data on unlawful input tax adjustment should be prepared after application of agreed upon filters at the FBR level and the same should be disseminated to the field formations along with an explicit and clear SOP. It was agreed that necessary approval in this regard will be sought from Member (TPA) and Member (IR).

Brief discussion regarding entries of audit cases in TAMS also took place during the meeting. Participants were of the view that training of field officers & officials is required for which PRAL will submit the schedule. There was also need to revisit the Planning Forms by respective Chief Commissioners and rationalise the number of case Planned for Audit. This exercise must be completed soon.

Although visible improvements in entries of audit cases in TAMS are seen in daily reports but participants were further requested to expedite the work and update their audit positions regularly in TAMS. Director General, TAF reiterated that field formations need to give a prompt response keeping in view the interest of revenue.

He also requested PRAL senior management to arrange for more training on the use of TAMS software and improve it according to the needs of the field formations after taking their feedback. He stressed the need and urgency to address these issues in a systematic, organised, and rational way to achieve optimal results from the on-going exercise, sources added.

Copyright Business Recorder, 2012


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