The Federal Board of Revenue (FBR) has withdrawn powers of Directorate-General of Internal Audit (Direct Taxes) to issue notices to the taxpayers under section 176 of the Income Tax Ordinance 2001 for directly seeking tax record and information from them. In this regard, the FBR has issued SRO.1071(I)/2017. According to the sources, Directorate-General of Internal Audit (Direct Taxes) was legally empowered to seek record and information from taxpayers under section 176 of the Income Tax Ordinance 2001.

Following issuance of the SRO.1071(I)/2017, officials of the Directorate-General of Internal Audit (Direct Taxes) are not authorized to seek information from taxpayers under section 176 of the Income Tax Ordinance 2001. Under functions and powers of the Directorate-General of Inspection, in discharge of its functions, the directorate shall have the powers specified in section 176 of the Income Tax Ordinance, 2001. Through SRO.1071(I)/2017, the FBR has withdrawn the said powers of the directorate.

Resultantly, they cannot issue notices to the taxpayers under section 176 of the Income Tax Ordinance 2001, they added. Following is the text of the SRO 1071(I)/2017:- In exercise of the powers conferred by sub-section (2) of section 228 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Board is pleased to direct that in its notification No. SRO 660(I)/2005 dated 30th June, 2005, specifying functions, jurisdiction and powers of the Directorate General of Internal Audit, the following amendments shall be made, namely:-

In the aforesaid notification, in paragraph 2, sub-paragraph (2) shall be omitted.

Copyright Business Recorder, 2017