Full Audit Controversy Resurfaces Amidst Economic Slowdown
Summary
The government has revived the full tax audit process to complete pending files due to legal deadlines, stirring business concerns amid an economic slowdown and declining investment climate.
Key Points
- The interim government had stopped full tax audits to address business complaints, adopting risk-based audits instead.
- Current Finance Minister Dr. Swarnim Wagle has instructed to resume full tax audits to complete pending files.
- Legal provisions require tax audits to be completed within three years, creating pressure on tax offices to finalize old files.
- Full audits aim to deter tax evasion and ensure compliance, though businesses view them as harassment and commission culture revival.
