FBR establishes National Faceless Centre to automate tax audits

The Federal Board of Revenue (FBR) has launched significant reforms to modernize tax administration in Pakistan through the establishment of the National Faceless Centre (NFC) in Islamabad and a new electronic scrutiny system.

The NFC aims to eliminate direct face-to-face contact between taxpayers and officers to increase transparency and reduce corruption. Under this new framework, tax cases will be selected by a computerized, risk-based system rather than by individual officers. Once selected, cases are automatically assigned to officers who may be located anywhere in the country, ensuring the taxpayer does not know the identity of the assigned official. To ensure accountability, every case will undergo a three-stage process: one officer conducts the audit, a second performs the assessment, and a third reviews the work for quality before any final order is issued.

Additionally, the FBR has introduced an automated mechanism for the electronic scrutiny of sales tax returns. This system uses computerized cross-matching of returns and available data to identify legal errors or discrepancies. When issues are detected, taxpayers will receive notifications via the IRIS portal, providing them with at least seven days to clarify or rectify errors before legal or penal action is taken. If no response is received, a reminder with an additional seven-day window will be issued. All communications, notices, and responses will be digitally recorded on a system-generated dashboard.