Tax Audit Representation & Assessment Defense in Pakistan

A tax audit in Pakistan is FBR’s examination of your financial records to verify that declared income, expenses, and tax are accurate. Audits are conducted under Section 177 (Commissioner-initiated) or Section 214C (parametric or random ballot selection) of the Income Tax Ordinance, 2001. FBR can examine up to six years of records.

Section 177 empowers the Commissioner Inland Revenue to call for records and initiate an audit based on specific risk factors or discrepancies. Section 214C is a parametric or random ballot audit conducted by FBR at the policy level based on risk parameters. Both require the same professional response.

A Best Judgment Assessment under Section 214D is issued when FBR determines that a taxpayer’s records are unsatisfactory or unavailable. FBR estimates the tax liability at its own discretion — often significantly higher than the actual liability. A BJA can and should be professionally challenged with documented evidence.

Under Section 177, FBR can examine records and books of accounts going back up to six years from the current tax year. Section 174 of the Income Tax Ordinance requires taxpayers to maintain books of accounts for at least six years. This makes record-keeping and reconciliation critical for all businesses.

Fees depend on the type and complexity of the audit — a desk audit reply is priced lower than a full field audit or Best Judgment Assessment challenge. Re-assessment defense under Section 122 is priced by the amount at stake. Contact TaxAccountant.pk for a free audit review and fee estimate.

A desk audit typically resolves in one to three months depending on documentation and Commissioner workload. Field audits and complex cases with multiple hearing sessions can take three to six months or more. TaxAccountant.pk works to close audits as efficiently as possible.

Yes. Under a Power of Attorney, TaxAccountant.pk appears before the Commissioner Inland Revenue on your behalf for all audit hearings — presenting your financial records, responding to queries, and managing the entire audit interaction professionally.

Under the Finance Act 2025-26, any taxpayer whose income tax affairs have been selected for audit is granted immunity from re-selection for audit during the following three tax years under Sections 177 and 214C. Once your current audit is professionally closed, you are protected from re-selection for three years.

Failure to respond or appear results in FBR proceeding ex-parte — issuing a Best Judgment Assessment under Section 214D at its own discretion, typically inflated. Non-submission of required documents can also result in penalties of up to PKR 100,000 or more under Section 182.

Yes. TaxAccountant.pk provides tax audit representation in Islamabad, Lahore, Karachi, Rawalpindi, Faisalabad, and all 13 major cities. We appear before Commissioners across Pakistan and handle remote cases where in-person attendance is not required.