ISLAMABAD, March 27: The government has empowered the Commissioner of Income Tax under the Income Tax Ordinance 2001 to select any taxpayer for audit under Universal Self Assessment Scheme (USAS).

Well-placed sources told Dawn on Saturday that the commissioners under the new law could now select any taxpayer for audit on the basis of taxpayer's history of compliance or non-compliance with the tax law, the amount of tax, the type of business and any other factors the commissioner regards as relevant.

Under the old law of income tax, cases for audit will be selected through computer balloting. However, in the new law there would be no balloting to select cases for audits, added the sources.

According to the sources, this empowerment of commissioner would further increase his discretionary powers as he has also given the power under the new law to enter and search premises of taxpayers without any notice. The commissioner's right of access includes "full and free" access to premises including to accounts, documents and computers.

The commissioner is allowed to copy documents or computer stored information and might impound accounts or documents and retain them as long as necessary to examine them or to hold them for the purpose of prosecution.

Ironically, the government has introduced the concept of USAS in the new income tax law but at the same time enhanced the discretionary powers of the commissioners, which might result in harassing the taxpayers for any reasons.

When contacted Member Tax Facilitation and Education, who is also official spokesman of the Central Board of Revenue (CBR), Habib Fakhruddin told Dawn that the tax officials were working on formulating a uniform parameters to be followed by all commissioners in selection of cases for audit.

He, however, did not disclose the parameters through which the commissioners could be bind not to use the law against any taxpayer. He said parameters for selection of cases for audit under USAS would be finalized by end of this month.

He said meanwhile, in the commissioners conference to be held on Sunday various proposals regarding audit parameters would be discussed at length besides others issues. Under USAS there would be no specific percentage for selection of cases for audit, he said and added it depends on the nature of returns filed by the taxpayers.

According to the income tax law, the audit of one person didnot preclude the commissioner from auditing that person again in the next year and following years.