LAHORE: The Punjab Revenue Authority (PRA) has decided to establish a digital central monitoring cell to ensure scrutiny of tax payments and to curb evasion.
According to a PRA spokesperson, the cell will continuously monitor tax payments and records of various service-sector businesses. The records of local and international food chains, along with other service-sector businesses, will be subjected to detailed scrutiny through digital means.
A comparative analysis of digital and cash payment records maintained by businesses will be conducted. Modern digital monitoring systems will be utilised to identify possible under-reporting of sales and services, manipulation or falsification of records, and attempts to understate taxliabilities.
The spokesperson said discrepancies between the actual business volume of sales and services and the tax records declared by businesses will also be examined. Financial data obtained from different sources will be analysed to identify tax evasion and other irregularities.
Tax returns, tax payments and business activities declared by taxpayers will also be cross-checked to assess their consistency and accuracy. Records of both digital transactions and cash dealings will be brought within the scope of the monitoring mechanism.
The spokesperson further stated that the PRA will make extensive use of digital technology to prevent tax evasion and fraudulent practices in tax payments. The monitoring and scrutiny process will be further strengthened to ensure accurate collection of tax liabilities from the services sector.