NBR selects over 15,000 tax files for audit via random selection
NBR Chairman orders action against TIN holders evading tax or skipping return filings
The National Board of Revenue (NBR) has selected 15,494 income tax returns for audit for the 2023-24 tax year through a random selection method, as part of efforts to curb tax evasion.
The selection was made using a digital randomisation method, covering 0.5% of tax returns filed in each tax circle across the country, the NBR stated in a media release.
The initiative aims to maintain audit momentum while the NBR works to implement a fully automated, risk-based audit selection system, according to a BSS report.
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To prevent the same taxpayers from being selected repeatedly, returns chosen for audit in the past two years have been excluded from this year's selection, the NBR noted.
In the release, the tax regulator also stated that it is currently transitioning towards a fully automated audit system based on a Risk-Based Audit Selection Criterion. However, more time is needed to integrate data from all paper-based returns filed offline into its central database, it said.
According to the NBR, although transparency and impartiality can be ensured in the random selection method, some uncertainty remains about the desired results. It also emphasised on its commitment to complete the database entry of all paper returns filed offline as soon as possible.
If this work can be fully implemented, it will be possible to collect the desired amount of revenue by ensuring complete transparency, impartiality, and effectiveness of the income tax return audit selection process, the press release added.
