Notice review
The selection notice, tax year and scope reviewed.
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If FBR has selected your return for audit under section 177 or section 214C, the way you respond shapes the outcome. We prepare your records, reply to every information request, attend hearings with you and work to close the audit on the basis of your actual records.
Being selected for audit does not mean you have done anything wrong. It does mean FBR will examine your return in detail, and every figure needs support. Most problems in audits come from missing documents and unclear explanations.
Under the Income Tax Ordinance, 2001, a return can be selected for audit in two main ways. The Commissioner Inland Revenue may select a case under section 177, recording the reasons, or FBR may select cases centrally under section 214C, including through computer balloting or parametric selection. Once selected, the officer issues notices asking for books of account, bank statements, invoices, withholding certificates and explanations, and may use powers under sections 175 and 176 to obtain information.
If the officer finds income or claims that are not supported, the audit usually leads to an amended assessment under section 122. Before amending, the law requires the officer to give you an opportunity to be heard, normally through a show-cause notice under section 122(9). A clear, documented reply at that stage is often the difference between additions being dropped or upheld. If an order is passed against you, the next step is an income tax appeal.
Audits go far more smoothly when your books are in order. If your records need work before the first hearing, our bookkeeping and accounts reconciliation teams can rebuild and reconcile them quickly.
A fixed fee for the audit, agreed after we review the notice.
The selection notice, tax year and scope reviewed.
A list of everything FBR is likely to ask for.
Books, ledgers and reconciliations organised for review.
Point-by-point replies to every information request.
We attend hearings with you or on your behalf.
Legal and factual replies to proposed additions.
Reasoned requests for more time when needed.
A record built so any appeal starts strong.
Most adverse audit outcomes trace back to one of these.
Non-compliance can lead to an assessment on the information available and penalties under section 182.
We track every date.Unorganised records raise new questions instead of answering old ones.
We submit what is asked, organised.Deposits without explanation are often treated as unexplained income.
We reconcile deposits.A brief reply to a section 122(9) notice leaves additions unchallenged.
We reply on law and facts.Unsupported expenses may be disallowed, increasing taxable income.
We build the evidence.Audits often extend to your obligations as a withholding agent.
We review withholding too.Send us the notice as soon as you receive it.
We explain what FBR is asking and the timeline.
Agreed based on the scope of the audit.
Records gathered, reconciled and organised.
Written replies and hearing attendance.
Audit closed, or an appeal prepared if needed.
Audits focused on wealth and foreign income.
Business income, expenses and bank deposits.
Firm accounts and partners' shares.
Accounts, related parties and withholding.
Stock, sales and purchase reconciliations.
Pakistan-source income and treaty claims.
We bring accounting, tax and legal skills to the same file, so the numbers and the arguments agree.
Organised files that answer the officer's questions.
ACCA and ICAP Chartered Accountant qualifications and an FBR-registered income tax practitioner.
LLB-qualified advocate for show-cause replies.
Books rebuilt and reconciled when needed.
The same team continues if an appeal is needed.
Agreed before work starts.
Have a question that is not here? Send it to us on WhatsApp and we will reply the same day.
We will review it, tell you what FBR is likely to ask for and quote a fixed fee to handle the audit.
Book your free consultationThis page is general information about our services, not tax, legal or financial advice for your specific situation. Laws, rates and deadlines change with each Finance Act and official notification.