Tax fraud cases should be investigated through special directorate

Tax fraud cases should be investigated through special directorate

KARACHI: Tax practitioners have discussed sales tax matters at a pre-budget seminar and recommended that tax fraud cases should be investigation through a special directorate.

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 type of skill set and approach.

It is also discussed that same officer is responsible for conducting audit and adjudication- KTBA also filed petition in SHC seeking segregation of same which still pending

Lack of segregation, results in inefficiency and undue harassment of law compliant taxpayer, as officers invariably include allegation of tax fraud in almost every show cause notice, the members discussed.

They proposed for the budget 2021/2022 that cases of tax fraud should be investigated and adjudicated by a Special Directorate to be set up for this purpose.

Further, concerned officer exercising jurisdiction over a taxpayer, if has determined that taxpayer is involved in suspicious/criminal activity the case should be turned over to the Special Directorate.

Function of conducting audit and assessment of tax/adjudication should also be separated

Detailed framework / rules should be prescribed after consultation with all the stakeholders.

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