The Federal Revenue Board (FBR) approved the 2018-2019 Investigation Guideline on Wednesday.
The 2019 Study Guideline applies to individuals or groups of individuals who are subject to all or some of the three state federal tax laws, including the 2001 Income Tax Ordinance, the 1990 Sales Tax Act, and the 2005 Federal Tax Act.
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FBR announced that the criteria for selecting cases for the fiscal year 2018 would be determined by a scientific approach for which a software called the "Risk Based Audit Management System" (RAMS) was developed and implemented.
The FBR said this allows it to focus on business with the maximum number of non-compliant taxpayers while making it easier for compliant taxpayers and building confidence in the exam system.
According to the FBR, the IRS will soon hold a computer vote using risk-based parameters to select 0.76 percent of the cases for processing from the total number of applicants. For federal sales tax and excise duties.
FBR would select 1.67 percent and 5.65 percent of cases for reimbursement, respectively, from the total number of applicants after excluding tax periods that match the billing period used for income tax in the year 2018 was adopted.
To make things easier for taxpayers, FBR has approved the exclusion of certain categories of taxpayers from selection, including those already investigated by FBR's Intelligence and Investigation Department and all cases where taxable income is less than principal salary and pension is higher is then 50 percent of the taxable income, except in the case of business income.
Company executives are not entitled to such exclusion.The FBR stated that the parameters defined for the selection of the cases to be investigated are confidential and should not be disclosed.
