Income Tax Audit Expert – Procedural Manual   

The Revenue Mobilisation, Investment and Trade (REMIT) is a 39-months (2021 – 2025) programme funded by the UK’s Foreign, Commonwealth and Development Office (FCDO) and is being implemented by Adam Smith International (ASI). The programme provides technical assistance (TA) to Pakistan with a broader objective to implement reforms for strengthening macroeconomic stability and improving conditions for high and sustained growth, mutual prosperity, job creation and poverty reduction. The Programme works towards supporting the Government of Pakistan, its relevant ministries, institutions, and departments to strengthen revenue mobilisation reforms/initiatives, address investment environment challenges, facilitate trade and drive competitiveness by reducing trade barriers, and improve the macroeconomic policy and its management.

To optimise the Federal Board of Revenue (FBR) ’s operational effectiveness, REMIT has prioritised the development of comprehensive procedural manuals that can provide clear guidelines for the execution of tax laws on the pattern of HMRC departmental manuals. These guidelines cover crucial FBR processes such as voluntary and compulsory registrations, returns enforcement, conduct of audits, processing of refunds and exemption certificates, penalty proceedings, on-field inspections and record impounding, investigative audits, monitoring of sales at business premises, and arrest and prosecution proceedings. Income Tax Audit is one such key process at FBR that has been prioritised for the development of a standardized manual based on Income Tax Ordinance 2001, Income Tax Rules 2002, Court Judgements and Statutory Notifications and Guidelines Issues by FBR.

The development of comprehensive procedural manuals will provide a clear roadmap for FBR’s operations, reducing the inconsistencies currently experienced and increasing the overall efficiency of Pakistan’s taxation system. A standardised approach, guided by the procedural manuals, is anticipated to minimise litigation, primarily arising from procedural non-compliance. Simultaneously, an improvement in the quality of assessment procedures could lead to an increase in tax revenues. From the taxpayers’ perspective, procedural manuals can instil a sense of certainty in outcomes, making tax-related proceedings more predictable and less daunting.

Job Summary

The initiative primarily aims to create a comprehensive manual for standardised practices and procedures within FBR, starting with Income Tax Audit. The job entails examining and refining FBR’s existing Income Tax audit practices in accordance with law. Utilising extensive knowledge of Pakistan’s tax laws and global best practices, the Advisor is expected to develop a comprehensive procedural manual, bridging existing gaps and elevating operational standards. Collaborating closely with FBR, the Advisor is expected to conduct workshops, facilitate knowledge transfer, and ensure the seamless adoption and execution of standardised audit procedures, thereby enhancing FBR’s overall operational efficiency in the realm of Income Tax audits. 

Duties and Responsibilities

• Analyse and review existing Income Tax audit manual, practices and processes of FBR.
• Benchmark FBR’s current procedures against international best practices and HMRC departmental manuals.
• Develop a comprehensive procedural manual for the Income Tax audit process that is clear, detailed, and easily comprehensible.
• The audit manual should be thoroughly referenced wherever required.
• Develop Performa and Checklist for Income Tax Audit for all processes from selection to issuance of amended assessments.
• Identify gaps in current practices and recommend improvements.
• Collaborate with FBR staff and other stakeholders for feedback and integration of their insights into the manual.
• Organise and conduct workshops to familiarise FBR staff with the new procedural manual.
• Provide expert assistance in the creation of training materials and practice guides for Income Tax audit processes.
• Monitor and report on the adoption of the new procedures and their effectiveness post-implementation.

Qualifications and Experience:

• Bachelor’s degree in Taxation, Accountancy, Finance, or related fields. Master’s or  other advanced degree will be preferred
• Minimum of 10 years of experience in income tax audit, preferably in the public sector or in reputed Tax Advisory firms. 
• Familiarity with Pakistan’s tax laws, FBR’s operational procedures, and international best practices.
• Proven track record of developing procedural manuals or similar documentation.
• Strong analytical, research, and organisational skills.
• Excellent written and verbal communication skills.
• Prior experience in training and workshop facilitation would be an advantage.

Reporting

The “Income Tax Audit Expert – Procedure Manual” will report to the REMIT Team Lead and REMIT Tax Lead.

Level of Effort (LOE)

The level of effort for this assignment is around 30 days.