Check whether your Taxpayer Identification Number (TIN) has been selected for audit under the National Board of Revenue’s Audit Program.
Returns have been selected using a risk-based audit criterion, identifying taxpayers based on specific financial risk indicators. The system selects between 20 and 200 taxpayers from each tax circle while eliminating human intervention.
If your return is selected for audit, do not panic and follow the steps:
1. Check the notice:
After receiving the audit notice, carefully read the reasons mentioned in the letter and the requested information.
2. Prepare Explanation and Documents:
Prepare proper explanation and all supporting documents (e.g. bank statements, income tax certificates, vouchers, and other required documents) in support of income, expenses, assets, liabilities, and investments.
3. Filing a revised return:
If errors or discrepancies are detected, it is possible to expedite the audit by filing a revised return before the hearing.
4. Attending the hearing:
Explain the documents to the tax officer at the relevant tax office on the scheduled date and explain any discrepancies.
5. Professional advice:
It is wise to seek the help of a professional income tax consultant e.g. Income Tax Practitioner (ITP), Advocate or Chartered Accountant (CA), Cost and Management Accountant (CMA).