ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday approved Audit Policy 2019 for selection of cases for all three federal taxes using the ‘Risk Based Audit Management System’ (Rams) software.

The audit policy will pertain to tax year 2018 and apply to persons or classes of persons falling under all or any of the three domestic federal tax statutes including the Income Tax Ordinance 2001, Sales Tax Act 1990, and Federal Excise Act 2005. As per policy, the criteria for selection of cases for all taxes for tax year 2018 would be parametric, the FBR said. Cases will be selected on scientific approach for which Rams has been designed and put in place, the bureau added.

Rams will enable FBR to focus on cases with maximum non-compliant taxpayers, while facilitating compliant taxpayers and building the confidence of taxpayers in the audit system.

Published in Dawn, August 27th, 2020