FBR introduces electronic scrutiny system for sales tax returns

The FBR has amended the Sales Tax Rules, 2006, to establish a mechanism for the automated scrutiny, analysis and cross-matching of sales tax returns and other available data through the computerised system. Under the amended rules, the relevant Inland Revenue officer may also issue an advance notice generated by the system to the registered person.

The notice will specify a deadline for submitting a response, which cannot be less than seven days. If no response is received within the specified period, a reminder will be issued, providing the registered person with an additional period of at least seven days to respond.

The system will maintain records of discrepancies or issues identified through automated scrutiny, notices sent to registered persons and responses received. These records will also be shared with the relevant Inland Revenue officer having jurisdiction., details of notices issued to registered persons, their responses and subsequent actions will be maintained in a system-generated dashboard.

The automated scrutiny, analysis and cross-matching of sales tax returns and other available data, along with electronic communication with registered persons regarding issues identified by the system, will be implemented through a Change Request Form (CRF) for the smooth and effective operation of the computerised system.

The relevant Inland Revenue officer will examine the response submitted by a registered person and, where necessary, take action under the applicable provisions of the Sales Tax Act and rules made thereunder.