In fresh operational guidelines for sales tax records, the Federal Bureau of Revenue (FBR) on Saturday announced to initiate the audit of income tax returns of retailers and real estate tax filers,   sources said. The FBR warned retailers and real estate tax filers to avoid mistakes in sales tax filings, as the revenue board is set to audit the income tax and sales tax returns.

Sources close to the development stated that the decision regarding the audit of retailers’ income tax and sales tax returns will be under the horizon of the relevant Regional Tax Offices (RTOs). Likewise, the strategy was also established for the audit of real estate income tax and sales tax filers under the relevant RTOs.It is worth mentioning here that the FBR aims to streamline the audit process instead on relying on random selection through a lottery system. The relevant RTOs have the authority to make targeted audits of income tax and sales tax based on discretionary powers.

 
Credit: Independent News Pakistan (INP)