June 23, 2024

Karachi, June 23, 2024 – The Federal Board of Revenue (FBR) is set to conduct investigative audits of sales tax cases starting from the next fiscal year, according to official sources.

The FBR has been granted the authority to perform investigative audits in instances of suspected tax fraud. As per the proposed section, if during an audit under section 25 of the Sales Tax Act, 1990, or through other means, the audit officer, based on the balance of probabilities, suspects that a registered person is involved in tax fraud, they may initiate an investigative audit. This action requires approval from the concerned Commissioner of the FBR. The investigative audit must be completed within ninety days of initiation.