Summary FBR introduces automated electronic scrutiny of sales tax returns, giving taxpayers advance notice and time to rectify discrepancies before legal action.
ISLAMABAD (Web Desk) - The Federal Board of Revenue (FBR) has introduced a mechanism for the electronic scrutiny of sales tax returns, enabling the automated identification of legal errors, discrepancies and other issues through its computerised system.
Under the new system, registered persons will receive online advice or advance notices through the IRIS portal, allowing them to provide explanations, rectify errors or take necessary corrective measures before any legal or penal action is initiated.
The FBR has amended the Sales Tax Rules, 2006, to establish a mechanism for the automated scrutiny, analysis and cross-matching of sales tax returns and other available data through the computerised system.
Under the amended rules, the relevant Inland Revenue officer may also issue an advance notice generated by the system to the registered person. The notice will specify a deadline for submitting a response, which cannot be less than seven days.
If no response is received within the specified period, a reminder will be issued, providing the registered person with an additional period of at least seven days to respond.
The system will maintain records of discrepancies or issues identified through automated scrutiny, notices sent to registered persons and responses received. These records will also be shared with the relevant Inland Revenue officer having jurisdiction.
According to the FBR, details of notices issued to registered persons, their responses and subsequent actions will be maintained in a system-generated dashboard.
The automated scrutiny, analysis and cross-matching of sales tax returns and other available data, along with electronic communication with registered persons regarding issues identified by the system, will be implemented through a Change Request Form (CRF) for the smooth and effective operation of the computerised system.
The relevant Inland Revenue officer will examine the response submitted by a registered person and, where necessary, take action under the applicable provisions of the Sales Tax Act and rules made thereunder.
