The Internal Audit (Inland Revenue) is one of the internal control tools of the Federal Board of Revenue (FBR) exercised through Directorate of Internal audit. The main objective of this organization is to ensure both qualitative and quantitative fairness and objectivity in the process of taxation in order to safeguard the interest of the state. It also acts as an effective monitoring tool of FBR for gauging the performance of Inland Revenue field formations. This monitoring involves conducting Inspection and Audit of the Inland Revenue offices and officers, to detect fraud, leakages, irregularities and implementation gaps suggesting thereby corrective measures. Gaps are identified and follow up is made till the retrieval/settlement of the loss of revenue detected.;
The Directorate General of Internal Audit (IR) was created under section 228 of the Income Tax Ordinance 2001. Its powers and functions are defined in SRO 660(l)/2005 dated 30th June 2005, SRO 1038(l)/2010 dated 12th November, 2010 issued under section 30B of the Sales Tax Act, 1990 and SRO 1039(l)/2010 dated 12th November, 2010 issued under section 29 of the Federal Excise Act, 2005. The manual of Internal Audit Inland Revenue (Revenue & Expenditure), 2011 provides detailed guidelines regarding the working of the Directorate General of Internal Audit (IR).
The jurisdiction of the Directorate General of Internal Audit (Inland Revenue) extends to the whole of Pakistan. The Director General is stationed at Islamabad. It has the following three Directorates:-
(a) Northern Region, Islamabad
(b) Central Region, Lahore
(c) Southern Region,
Karachi Each Directorate is headed by a Director (BPS 20) and assisted by Additional Directors, Deputy Directors and Assistant Directors.
