NBR decides to recheck top taxpayers\\\' financials

The National Board of Revenue (NBR) has intensified audit activities for a recheck of the financial statements submitted by top taxpayers, both corporate and individual, against the backdrop of its target failure.    
Officials said the select taxpayers have been divided into four categories to assess their financial statements.
Some 50 top individual taxpayers have been selected on the basis of highest income in 2013-14 from each of the 33 tax zones.
Also, 25 individual taxpayers have been selected from each tax zone on the basis of highest disclosed net assets.
From among the corporate ones, 25 highest taxpayers have been selected on the basis highest income-tax payment while 25 have been listed among the taxpayers who showed highest turnover in 2013-14.
A senior tax official said the NBR has compiled the list of the taxpayers from all tax offices across the country considering high potential of revenue collection.
"It is not that all of the tax files will be audited, but revenue potentiality would be assessed through close monitoring," he said.
Income-tax members and heads of different income-tax wings have been assigned to monitor different tax zones and guide them in increasing tax collection through auditing the high-potential taxpayers, he said about the objective of the revenue-augmenting drive.  
In a recent note, income-tax audit and intelligence member Abdur Razzaque of the NBR requested the members concerned to follow up their respective tax zones on the basis of compiled lists of the top taxpayers.
He also requested sorting out of potential tax files for auditing.
Tax officials said the audit activity had been intensified recently following shortfall in income-tax collection against the set target until August.
Income-tax receipts fell some Tk 9.45 billion short of the target for July-August period.
Officials said field-level tax offices can send list of taxpayers seeking approval for auditing anytime as the NBR has lifted the timeline for auditing.
Earlier, there was a timeframe for sending the list and auditing tax files.  
According to the income-tax ordinance, taxpayers under the universal self-assessment system can get rid of auditing upon showing 20 per cent higher income and by complying with few conditions.
However, in the Finance Bill 2015 the government has incorporated a provision styled 'scrutiny assessment' empowering taxmen to examine arithmetical errors in all tax returns.
Under the provision, income-tax officials have obtained a legal basis to examine the tax files for finding only arithmetical mistakes.
 Tax officials said the provision cannot be termed 'auditing' but all of the tax files will go through the desk scrutiny.
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