Special audit authority to appoint nominated auditors, require certified reports, and trigger tax recovery action where discrepancies are found.

Special audit power allows an Assistant Commissioner to direct a registered person to have records audited by a chartered or cost accountant nominated by the Commissioner; the nominated auditor must submit a signed, certified report within the prescribed period, which may be extended for material reasons. The power applies notwithstanding any prior audit. The registered person is entitled to an opportunity of being heard before material from the special audit is used in proceedings. The Commissioner determines and pays audit expenses, and detection of unpaid or short-paid tax or wrongly availed input tax credit may trigger statutorily provided recovery or assessment action.

---

---

---