ISLAMABAD, Aug 2: The Federal Tax Ombudsman (FTO), Justice (Retd) Saleem Akhtar has asked the Central Board of Revenue (CBR) to devise clear parameters for the auditors to facilitate the taxpayers.

The ombudsman recommended to the CBR that senior tax officials should be made responsible to ensure the prescribed time frame was strictly followed.

It was observed that in case the taxpayers offer explanation to the audit observation or reply to these observations, the sales tax authorities should give their clear response within a specified period.

The decision was taken on the complaint of Expo (Pvt), Karachi against the sales tax department for not de-registering the firm for which the application was submitted about two years back.

They stated that they applied for de-registration to the collector of sales tax and central excise (East), Karachi on August 4, 1999. After almost two years of filing of application, the process of de-registration was started on July 27, 2001 and an auditor was assigned to audit their sales tax records.

The Justice observed that where a contravention case is initiated against a taxpayer, the sales tax authorities should intimate him of the nature of contravention and the action proposed to be taken.

The FTO further recommended that CBR should consider specifying a time frame for issuance of a show cause notice and completion of adjudication proceedings.

The FTO asked the CBR to institute an inquiry to identify the reasons for the inordinate delay at various stages of the audit, and take suitable action against the officials responsible for the delay.

The FTO directed the collector (Adjudication) to ensure that show cause notice is issued to the complainants within 30 days and adjudication proceedings for de-registration is given within 15 days of the issue of the adjudication order.

The compliance be reported within two months of this order, said the FTO.