ISLAMABAD, Feb 27: The tax authorities have detected common mistakes in the audit of income tax cases resulting in loss to national exchequer.

Official report, compiled by Central Board of Revenue (CBR) and made available to Dawn, has recommended measures for removing these errors detected during audit of circles as well as inspection of cases.

According to the report, the irregularities detected in the audit system includes no/short levy of additional taxes under section 86, 87, 88 and 89 of income tax 1979 and 31B, 31BB and 31BBB of wealth tax act, 1963; non/short charging of worker welfare funds/additional tax; non/short imposition of surcharge; wrong calculation of tax; excessive grant of the depreciation allowance; wrong allowance of personal expenses.

It was also observed in the audit cases the short levy of tax due to adoption of declared share income of partners instead of assessed share income; non-inclusion/ wrong calculation of share from URF/AOP and agriculture income in total income; passing of wrong orders under section 156; irregular allowing of credit for taxes paid under section 50 and 54; non-implementation of provisions of section 52; omission of demand entry from the demand and collection register; arrears demand not brought forward; irregular writing off of the arrears, escapement of taxable perquisites, allowances and benefits, incorrect calculation of rebate on donations and incorrect carry forward/ adjustment of laissez.

The report recommended that to overcome all these problems the CBR should fully automate all the records and also enhanced the professional know-how of the officers. The training of record keepers in office procedure would be ensured so that they maintain assessment record properly—covers of assessment record, number of pages, weeding out of infructuous record, maintenance of register.

It was also recommended that tenure of any posting should not be less than two years and more than three years.