GOVERNMENT OF PAKISTAN

REVENUE DIVISION

CENTRAL BOARD OF REVENUE

(SALES TAX WING)

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SALES TAX GENERAL ORDER NO.   05 /2002

SUBJECT: -        GST-RELATED FUNCTIONS OF MEMBER AUDIT.

                   The post of Member (Audit) was specifically created to cater for the supervisory and monitoring needs of audit in the field formations of Central Board of Revenue.  In order, therefore, to specify and streamline the functions of Member (Audit) relating to sales tax audit, the Central Board of Revenue is pleased to specify that Member (Audit) shall perform the following functions: -

(i)        development and review of audit strategy (short term and long term), the selectivity criteria, audit re-assessment and analysis system, post-audit monitoring system, monitoring system for audit detections and recoveries of detected amounts and re-engineering of audit processes;

(ii)       preparation and follow-up of audit schedules for desk audit, snap audit and comprehensive audit (excluding refund audit and investigative audit);

(iii)      scrutiny and analysis of audit reports on selective basis and issuance and monitoring of guidelines for the preparation of audit reports and review of the formats of audit report writing from time to time;

(iv)      preparation and updation of sales tax audit manual and industrial notes;

(v)       preparation of monthly, quarterly and annual audit reports indicating the overall audit performance of the Sales Tax department at national level;

(vi)      coordination for audit efforts between different taxes including interchange of data acquired as a result of audit;

(vii)      handling of special audits and related matters;

(viii)     liaison with DRRA for sales tax audit purposes;

(ix)       handling of all audit-related issues with Federal Tax Ombudsman and consequent actions;

(x)        assessment of the audit training needs, preparation of audit training modules and coordination for audit-related training of the Sales Tax department in consultation with Member, Sales Tax;

(xi)       consultations with Member (Legal) for expeditious adjudication of cases detected through audit; and

(xii)      removal of grievances of the taxpayers community pertaining to audit matters in consultation with Member, Sales Tax.

2.                     In the Central Board of Revenue, Member (Audit) shall be assisted by one Chief (Audit), one Secretary (Audit Policy) and one Secretary (Audit Operations).  In the field, all the Assistant Collectors or Deputy Collectors and Additional Collectors handling audit matters at Collectorates’ level shall work under the control and guidance of Member (Audit). The 66% of total number of auditors/senior auditors in each Collectorate shall be posted to conduct audit other than refund audit and investigative audit.  The inter-Collectorate posting and transfer of auditors and senior auditors posted for conducting audit shall be made by Member (Audit) in consultation with Member (Sales Tax).