Tax audit don’t have to be that much scary!

Taking the fear out of an FBR Tax Audit

Getting selected for an FBR tax audit can cause a roller coaster of emotions.

Imagine this situation. You receive a thick letter from the FBR introducing a correspondence audit. Now, you are freaking out because you have 15 days to get out of it. You start scrambling to find receipts for your sales. When you start to think about how much that credit was and how large of a deduction you claimed, you slowly start to see your summer vacation plans dwindle away. But stop! If you educate yourself about your rights during an audit and are positive in handling the case, you often have nothing to worry about. Here are a few tips.

You have a right to representation

You may have an attorney, certified public accountant or tax practitioner assist you or handle the audit on your behalf. In fact, if you sign a power of attorney, your representative may appear without you and may communicate with the FBR independently.

Remember to respond timely

If you receive communication from the FBR, don’t delay on your response. For example, after an audit the FBR details its findings in an Examination Report. But this is not final. You can file an appeal within 30 days to seek further review.

If you file a timely appeal of your audit, your case is reviewed by an FBR appeals officer or commissioner. In appeals, you and your representative may work more.

Know what can lead to an FBR examination

Knowing your rights is only half the battle; Professionals of KLA Pakistan will never let down your expectations and bring you out with positive and much reliable results.

The last piece of advice for handling an audit is actually quite simple, but it is tempting for some not to take it. Do not ignore an audit – the FBR will remember you and will continue to charge you penalties and interest.

Now that you know you have rights and can get professional assistance, you have no reason to worry. Take a deep breath, determine what tax year is at issue. What documentation is needed, and by when you need it. After that, it is just a matter of proving to the FBR that you are entitled to what you have claimed. Best of Luck!

KLAPakistan provides professional assistance in all of your tax related services including issuance of compliance of Notices, Tax Audit, and appeals for salaried to businesses of all sizes. Get in touch today — Law Redefined!

FOR ALL YOUR TAX RELATED REQUIREMENTS, CONSULT OUR PROFESSIONALS.

You might find these further articles useful:

If Your Goal Is To Get Biggest Refund Possible

Why you should Audit your Financial Statement

Advantages and Benefits of Company Registration in Pakistan

If Your Goal Is To Get Biggest Refund Possible

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