Global Law Company (GLC) specializes in providing Tax Audit Assistance services in Pakistan, aiming to guide and support taxpayers throughout the tax audit process. The company’s team comprises expert tax professionals well-versed in the relevant laws, ensuring comprehensive assistance to navigate the complexities of tax audits.

Tax Audit Process in Pakistan:

In Pakistan, taxpayers are required to make voluntary compliances based on available information and documentation. The Federal Board of Revenue (FBR) conducts tax audits to verify the accuracy of taxpayers’ determined tax liabilities and their deposits into the government treasury. The “Tax Audit Management System” (TAMS) is a centralized, risk-based, and automated system established by the FBR to effectively monitor taxpayer compliances.

Automated Selection Process:

Taxpayers selected for audit undergo an automated balloting process, utilizing multiple information and parameters to ensure transparency in the selection process. The Income Tax Ordinance, 2001, grants authority to the Commissioner to request the books and records of a taxpayer within six years of the tax year in which the tax return was filed.

Tax Audit Findings and Appeals:

During the tax audit, the Commissioner gathers necessary information and seeks clarification from the taxpayer on relevant issues. Following this, an audit report is issued with observations and findings. If the Commissioner is dissatisfied with the taxpayer’s books and records, an order may be issued, allowing the taxpayer to file a tax appeal within a specific time period to contest the findings.

Comprehensive Tax Audit Assistance by GLC:

GLC offers comprehensive tax audit assistance to taxpayers facing audits in Pakistan. The company’s expert team carefully reviews audit findings, assists in preparing a robust defense, and guides clients through the tax appeal process when necessary. GLC ensures that clients’ rights are protected, and they receive fair treatment under the law.

Offenses and Penalties under Income Tax Ordinance, 2001:

Additionally, GLC provides services to taxpayers dealing with compliance problems related to tax audits, appeals, and litigation, including offenses under the Income Tax Ordinance, 2001. Section 177 of the ordinance outlines penalties for non-compliance with audit provisions, imposing penalties for failure to provide required documents upon receipt of audit notices.

Penalties under Section 177:

• First audit notice non-compliance: Rs. 25,000 penalty.
• Second audit notice non-compliance: Rs. 50,000 penalty.
• Third audit notice non-compliance: Rs. 100,000 penalty.

Comprehensive Assistance to Avoid Penalties:

GLC’s professional team, well-versed in tax laws and regulations, offers comprehensive assistance to help taxpayers navigate compliance issues and avoid penalties. The company works closely with clients, tailoring its approach to individual needs and circumstances. The goal is to provide practical solutions that resolve immediate issues and establish long-term tax compliance strategies.

By availing our services, taxpayers can ensure that they are fully equipped to address their tax compliance problems. Global Law Company is dedicated to providing unparalleled expertise and support to taxpayers facing compliance problems with tax audits, appeals, and litigation. Whether addressing offenses under the Income Tax Ordinance, 2001 or resolving audit-related issues, GLC aims to ensure clients receive the best possible outcome and to provide practical solutions that not only resolve the immediate issues but also help clients establish long-term tax compliance strategies.

Feel free to reach out to Global Law Company for further assistance or to schedule a consultation.