CAF-2 · Chapter 15 · Question 12 of 15
The Commissioner is generally restricted from selecting a person's income tax affairs for audit under Section 177 if they have been audited in any of the preceding three tax years. Under what condition can this restriction be bypassed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) If the Commissioner obtains prior approval from the Federal Board of Revenue (FBR).
Explanation
The provision for selection of a person for audit shall not apply if their tax affairs have been audited in any of the preceding three tax years, provided that the Commissioner may still select them for audit with the specific approval of the Board.
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