Urdu Report Desk
The Federal Board of Revenue (FBR) has established a National Faceless Centre in Islamabad to move tax audits and assessments to a centralized digital system and reduce direct interaction between taxpayers and tax officials.
The initiative is part of Pakistan’s new Tax Operating Model, which seeks to limit individual discretion in tax matters. The government approved the model in principle in June.
Automated Selection of Audit Cases
Under the new system, audit cases will be selected through a computerized, risk-based process rather than by individual tax officers.
Once selected, cases will be automatically assigned to officers posted anywhere in the country. Taxpayers will not be informed of the identity of the officer handling their case, while officers will have no control over which cases are assigned to them.
Separation of Tax Case Stages
The new mechanism will separate the key stages of a tax case. One officer will conduct the audit, another will prepare the assessment, and a third will review the work before the final order is issued.
This will prevent a single officer from controlling a taxpayer’s case from the audit stage through to the final decision.
Online Notices and Hearings
Taxpayers will receive notices, submit responses and participate in hearings electronically through the FBR’s IRIS system.
Where physical verification or recovery is legally required, the relevant process will be carried out separately by field teams.
Legal Framework for Faceless System
The Finance Bill also provides a legal framework for faceless audits, assessments and appeals, supporting the shift toward a more centralized and digital system for handling tax matters.
