Moreover, sources said that board had issued around 400 notices to the registered persons including businessmen, politicians, etc only in Karachi and initiated audit exercise under section 177 of Income Tax Ordinance, 2001. However, the board after the lapse of over 10 months had neither pursued the audit against the taxpayers, having investments in offshore companies nor closed the same, hanging the taxpayers in the balance, they maintained.
Replying to a question, sources said that the tax office informed the taxpayers when approached that FBR did not communicate any SOP in this regard therefore they were unable to pursue their audit. When contacted FBR officials, on a condition of anonymity said that board was presently not in a position to initiate extensive audit exercise against these taxpayers, due to inadequate information regarding their investments in offshore companies.
They said that although the board had now become signatory to exchange information with 63 countries, the development of the system for the purpose was in initial stage therefore the exchange of information was presently a formidable task. Furthermore, the sources said: "Once the system is developed, audit exercise against the taxpayers, having investments in offshore companies countrywide will be conducted at massive scale.
Copyright Business Recorder, 2017