Naturally As long as CA’s are number ONE, everybody will gun them. Being number one, the chartered accountants perfectly understand that many authorities are gunning on them though they are the partner to national building. Everyone is trying to latch Chartered accountants for third-party irregularity, noncompliance or fraud. A mania to create laws against the profession is strongly spreading day by day among all authorities connected with the Chartered Accountants working. Recently there were downpours decisions taken against the practicing Chartered Accountants. Right from The Prime Minister of India speech on CA day, SEBI, NFRA, RBI, CBDT, Company law and many others are in race to blame and to catch the practicing Chartered Accountants. Not only the practicing, will NFRA have the power to deal chartered Accountants in the industry too.
Surprisingly ICAI has joined the same band wagon race against the chartered Accountants. This is quiet extraordinary as their own ALMA MATER is gunning against their own pupil i.e. The Chartered Accountants. The Council of the Institute of Chartered Accountants of India, at its 373rd meeting, held in February, 2018 constituted the Taxation Audits Quality Review Board (TAQRB ) as its non-standing committee. The references to the board are limitless and deadly. The Chartered Accountants have yet to see the colour of GST audit but TAQRB is all set to make its policing well against the Chartered Accountants for their Tax audit and GST audits. What a cool profession of Chartered Accountancy? No questions, No anger, No protest just witnessing the final nail in the coffin assuming the nail will not fixed against them. However, the writing on the wall is clear that every connected authority to chartered accountants at Indian soil is ready to screw the Indian Chartered Accountants and the day is not so far that every chartered accountant shall be in this one or the other vicious circle created by the law makers.
ICAI has constituted the Taxation Audits Quality Review Board (TAQRB) with a sole aim to review any report prescribed under the Income-tax Act, 1961 and Rules framed thereunder and any report prescribed under the Indirect Tax Laws including GST Law which are certified by a Chartered Accountant with a view to determine, to the extent possible, compliance with the reporting requirements prescribed under the respective Acts and related Rules and pronouncements, guidance notes issued, if any, by ICAI in respect of the same.
TAQRB – TO REVIEW ANY INCOME TAX AUDIT, GST AUDIT REPORT
TAQRB can review any report prescribed under Income Tax & GST with a view to determine the compliance and the reporting requirements under the Income Tax Act and Indirect Tax Laws including GST laws with the respective pronouncements, guidance notes of ICAI. Through this, Every Tax Audit and GST audit report shall be eligible for the review by TAQRB.
To review any report prescribed under the Income-tax Act, 1961 and Rules framed thereunder and any report prescribed under the Indirect Tax Laws including Goods and Services Tax Law which are certified by a Chartered Accountant (tax auditor) in respect of certain enterprises with a view to determine, to the extent possible, compliance with the reporting requirements prescribed under the Income-tax Act, 1961 and Rules framed thereunder; compliance with the reporting requirements prescribed under the Indirect Tax Laws including Goods and Services Tax Law and compliance with the respective pronouncements, guidance notes of ICAI.
TAQRB – ACTION CAN BE SUO MOTO OR ON REFERENCE
TAQRB shall review the various reports including Tax Audit & GST audit either suo moto or on a reference made by regularity authorities viz. RBI, SEBI, IRDA,MCA,C&AG,CBDT, CBIC and above all the state commercial tax departments. So the Chartered Accountants working will be subject to complaint from these high-profile regulators for all kind of their reports. Not only the regulators but if there are some media reports about the serious irregularity in taxation matters, TAQRB shall review the reports of that enterprise suo moto.
To review the various reports prescribed under the Income-tax Act, 1961 and Rules framed thereunder and under the Indirect Tax Laws including Goods and Services Tax Law either suo moto or on a reference made to it by any regulatory body including Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority, Ministry of Corporate Affairs, Comptroller and Auditor General of India, the Central Board of Direct Taxes, the Central Board of Indirect Taxes and Customs, State Commercial Tax Departments, etc. The Board may also review the reports of the enterprises relating to which serious irregularities in taxation matters (direct and Indirect) have been highlighted by the media reports.
TAQRB – INTERACTION WITH CBDT, CBIC & STATE CTD TO SEEK REPORT
TAQRB shall be equipped to interact the highest authority of the taxation of direct taxes, indirect taxes dealing with central and state subjects to seek the information about the enterprise and about the reports submitted by the chartered Accountants. See the third term of reference given to the TAQRB .
The Board may interact with Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC)/State Commercial Tax Department to seek the reports and /or other information of the enterprises from the CBDT as well as CBIC /State Commercial Tax Department.
TAQRB – MAY OBTAIN REPORTS FROM TAX AUDITOR
The Board may obtain the reports certified by the member (tax auditor) under the Income-tax Act, 1961 and Rules framed thereunder and under the Indirect Tax Laws including Goods and Services Tax Law and/or seek any other documents and information from the member (tax auditor) who has certified the report to be reviewed.
TAQRB – MAY REFER TO COUNCIL FOR NON COMPLIANCE AGAINST CA
The Board wherever finds any material non-compliance with the factors stated at paragraph 2 above, it may refer the case to the Council of the Institute of Chartered Accountants of India for initiating appropriate action against the tax auditor under the Chartered Accountants Act, 1949. In so far as the management of the enterprise is concerned, pending the grant of relevant powers to the Board by the Government of India, the Board would inform irregularity so found to the regulatory body relevant to the enterprise.
TAQRB – AN ADVISORY TO CA FOR IRRELEVANT NON COMPLIANCE
In cases where no material non-compliances are observed by the Board and only immaterial non-compliances are observed, the Board may not refer the case to the Council of the Institute of Chartered Accountants of India for initiating action against the tax auditor under the Chartered Accountants Act, 1949. In such cases, the Board would appropriately bring the non-compliance to the attention of the tax auditor by way of an advisory.
TAQRB- FINDINGS OF NON COMPLIANCE BY TO BE PUBLISHED
With a view to apprise the members of the Institute and others concerned about the major non-compliances observed during the review, the Board may compile such non-compliances or commonly found irregularities from time to time and publish the same in Journal / publication of the Institute, without mentioning the names of the enterprises concerned and/or their tax auditors. Publication may also be brought out to guide the members in respect of Direct and Indirect tax audits and diligence to be exercised thereof.
TAQRB- ENTERPRISES WITHIN THE PURVIEW
The enterprises within the purview of the Board include:
– Entities whose equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India.
– Banks (including co-operative banks), financial institutions or entities carrying on insurance business.
– All commercial, industrial and business reporting entities, whose turnover (excluding other income) exceeds rupees one hundred crore in the financial year as may be decided by the Board.
– Holding and subsidiary entities of any one of the above.
– such other category of enterprises which in the opinion of the Board make the public interest vulnerable due to susceptibility to non-compliance of reporting requirements prescribed under the Income-tax Act, 1961 and/or under the Indirect Tax Laws including Goods and Services Tax Law relevant to the enterprise and non-compliance of the reporting obligations of the tax auditor
TAQRB- RECOMMENDATIONS TO THE COMMITTEES OF ICAI
The Board may also give suitable recommendations to the various Committees of ICAI. Further, The Board may organise webcasts and seminars/ conferences/ programmes to educate the members and other stakeholders about the probable non-compliances which may occur while certifying the various reports under the Income-tax Act, 1961 and/or the Indirect Tax Laws including Goods and Service Tax Law and to organise training programmes for Members for training them as Technical Reviewers.
TAQRB-EMPANELING AS A TECHNICAL REVIEWER
ICAI is smartly using its stick. It’s the “carrot and stick” approach clearly reflected to a policy of offering a combination of reward (As Technical Reviewer) and punishment (As Tax Auditor) to induce good behaviour. It is named in reference to a cart driver dangling a carrot in front of a mule and holding a stick behind it.
On 24th July 2018, ICAI announced the empaneling as a Technical Reviewer with Taxation Audits Quality Review Board. TAQRB is in the process of empaneling Technical Reviewers to conduct the detailed reviews having expertise in direct as well as indirect taxation, for review of the reports under tax laws to decide compliance with the reporting requirements. For empaneling as a Technical Reviewer with TAQRB, a member needs to satisfy the following conditions:-
i) Possess at least ten years’ Post Qualification experience in the practice of taxation (Direct and/or Indirect); and
ii) Be currently active in the practice of taxation.
By becoming a Technical Reviewer one gets the inherent advantage of furthering one’s own technical knowledge in the field of Taxation. A technical Reviewers is entitled to receive an honorarium of Rs. 10,000/- per report reviewed. In case, you are meeting the minimum requirements as mentioned above fill the online application form at http://eforms.icai.org/icaionlineform/frmtaxaudit.aspx and send it at the earliest to: The Secretary, Taxation Audits Quality Review Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Plot No A-29, Hostel Block, 6th Floor, Sector-62, Noida-201 309 Email ID: [email protected]