Tax Audit Pakistan MCQs 2026

Tax audit FBR in the context of Tax Audit Pakistan refers to

1. Asame as company statutory audit report✓
2. Bexamination under Income Tax Ordinance 2001 to verify correct income reporting✓
3. Conly sales tax never income tax✓
4. Dvoluntary hobby only✓

Tax Audit Pakistan: Transfer pricing audit can be defined as

1. Aonly domestic cash sales✓
2. Bignore all related parties✓
3. Conly payroll matters✓
4. Dexamining related party cross-border transactions at arm length✓

Which statement about Tax audit of banking transactions is correct

1. As116 and withholding provisions on cash and banking✓
2. Bbank transactions never reviewed✓
3. Conly export invoices✓
4. Donly import GD only✓

A key aspect of Amnesty and audit is that it involves

1. Aamnesty always prevents any future audit forever✓
2. Bnever any amnesty scheme in Pakistan✓
3. Cprior amnesty schemes may affect reopening depending on law at time✓
4. Damnesty replaces all tax law permanently✓

Tax Audit Pakistan: Tax audit of NGOs can be defined as

1. Anon-profit entities audited for exemption compliance and unrelated business✓
2. BNGOs never audited✓
3. Call income always exempt without review✓
4. Donly members clubs exempt from all law✓

A key aspect of Selection for tax audit is that it involves

1. AFBR uses risk-based computer ballot and parameters✓
2. Brandom only with no criteria ever✓
3. Call taxpayers exempt✓
4. Donly salaried never audited✓

Best judgment assessment in the context of Tax Audit Pakistan refers to

1. Anever used in practice✓
2. BFBR may estimate income if taxpayer fails to maintain records✓
3. Conly for large multinationals✓
4. Drequires taxpayer consent always✓

Withholding tax audit is best described as

1. Averifying deduction and deposit of tax at source✓
2. Bwithholding never audited✓
3. Conly corporate tax rate audit✓
4. Donly property tax✓

A key aspect of Statute of limitations tax audit is that it involves

1. Aunlimited forever always✓
2. Bgenerally five years from end of tax year subject to exceptions✓
3. Conly thirty days✓
4. Donly one day after filing✓

In Tax Audit Pakistan, Appeal against tax audit primarily means

1. Ano right of appeal✓
2. Bonly FBR internal memo✓
3. Cappeal to ICAP only✓
4. Dtaxpayer may appeal to Commissioner Appeals and higher forums✓

Tax Audit Pakistan: Alternative dispute resolution tax can be defined as

1. Anever available in Pakistan✓
2. Bonly criminal courts✓
3. Conly international arbitration always✓
4. DADR mechanisms to settle audit disputes without prolonged litigation✓

Which statement about Advance tax reconciliation is correct

1. Aadvance tax ignored in audit✓
2. Bauditor verifies advance tax payments against final liability✓
3. Conly penalty section reviewed✓
4. Dno reconciliation required✓

Tax Audit Pakistan: Field formation tax audit can be defined as

1. Aonly Islamabad headquarters audits✓
2. Bonly foreign embassies✓
3. CFBR field offices conduct desk and field audit of taxpayers✓
4. Dnever field visits✓

In Tax Audit Pakistan, Documentation for tax audit primarily means

1. Ano records required for companies✓
2. Bmaintaining accounts vouchers bank statements and tax returns✓
3. Conly verbal records✓
4. Ddestroy all after filing✓

Tax Audit Pakistan: Penalties after tax audit can be defined as

1. Ano penalties ever✓
2. Bonly reward for underpayment✓
3. Cadditional tax and penalties for concealment or default✓
4. Dpenalty only on auditor✓

Which statement about Benami transaction audit link is correct

1. Abenami law unrelated to tax✓
2. Bonly property never income✓
3. Cnever investigated✓
4. DFBR and other agencies may trace benami assets in tax cases✓

Tax Audit Pakistan: Corporate tax audit issues can be defined as

1. Aonly employee count reviewed✓
2. Bonly logo design fees✓
3. Cdepreciation admissibility head office expenses and inter-company charges common areas✓
4. Dnever examine financial statements✓

Tax Audit Pakistan: Tax audit notice can be defined as

1. Ano notice required FBR enters freely always✓
2. Bonly phone call sufficient always✓
3. Cnotice optional for all✓
4. Dtaxpayer served notice to produce accounts and records✓

Sales tax audit overlap is best described as

1. Asame as income tax always one audit✓
2. Bseparate audit under sales tax law by FBR✓
3. Cnever conducted in Pakistan✓
4. Donly provincial never federal✓

In Tax Audit Pakistan, Tax audit vs statutory audit primarily means

1. Aidentical purpose and report✓
2. Bstatutory auditor always settles tax liability✓
3. Ctax officer signs audit opinion on FS✓
4. Dtax audit for tax compliance statutory for shareholder assurance✓