AG's Audit of Tax Documents - Trouble in Pakistan
A strong debate is going on in TIOL columns about the AG's Audit visiting the premises of assessees for audit. A similar issue is in news in Pakistan. The Auditor General of Pakistan in his recent reports has complained that Federal Board of Revenue (FBR) authorities were creating obstacles in the conduct of its audit.
The FBR, on the other hand, countered these accusations by questioning the authority of the auditor general in conducting its internal audit. In a circular issued on September 8 2010, the FBR denied the jurisdiction of audit by the department of the auditor-general of Pakistan.
The auditor general's report countered this circular, stating that it was issued even though the law and justice division had already given its opinion in 2008 that the auditor general did in fact have such jurisdiction. It also directed that the FBR should ensure production of all auditable accounts and that appropriate action should be taken against all those who hindered audit activity.
According to the Auditor-General's Functions, Powers, Terms and Conditions of Service) Ordinance 2001, the officer in charge of any office or department should provide all available facilities for audit inspection. Any person or authority hindering the functions of the auditor general regarding inspection of accounts shall be subject to disciplinary action.
The FBR has even taken the matter to the Supreme Court of Pakistan.