The Federal Board of Revenue (FBR) has introduced a new online system to identify errors in sales tax returns. The system will alert taxpayers about potential discrepancies before authorities take further legal action.
Under the procedure issued on September 25, the FBR’s computerized system can review sales tax returns and available taxpayer data. It can identify possible factual or legal mistakes and notify taxpayers through the IRIS system.
Taxpayers Get Time to Correct Errors
Taxpayers will receive online intimations explaining identified issues and allowing them to provide clarification or correct mistakes. They can also take other appropriate corrective measures after receiving the notification.
The new procedure gives taxpayers at least seven days to respond to an online intimation. If taxpayers fail to respond within the given period, the FBR will issue a reminder and provide another period of at least seven days.
FBR to Monitor Responses Through Dashboard
Furthermore, the computerized system will maintain records of detected discrepancies, issued notices and taxpayer responses. The FBR will store this information on its system dashboard for further review and monitoring.
After receiving a taxpayer’s response, the relevant Inland Revenue officer will examine the explanation and determine the next course of action. Where necessary, the officer will proceed under the Sales Tax Act, 1990 and its related rules.
The procedure covers automated scrutiny, analysis and cross-checking of sales tax returns and other available taxpayer information. As a result, the system will allow the FBR to identify potential compliance issues while giving taxpayers an opportunity to address discrepancies before further proceedings.
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