FBR Ends Direct Contact With Taxpayers

The Federal Board of Revenue (FBR) has launched a National Faceless Centre (NFC) in Islamabad to streamline tax audits and assessments through a centralized digital system. This initiative, part of Pakistan’s New Tax Operating Model, aims to minimize direct contact between taxpayers and tax officials, as well as limit individual discretion in tax cases. The government endorsed the model in June.

Under the new system, audit cases will be identified using a computerized, risk-based approach rather than being chosen by individual tax officers. Selected cases will then be automatically assigned to officers located throughout the country, with taxpayers unaware of the officer assigned to their case, and officers having no control over case allocation.

The process further separates the main stages of a tax case. One officer will perform the audit, another will prepare the assessment, and a third will review the work before a final order is issued, preventing a single officer from overseeing a taxpayer’s case from audit to final decision. Taxpayers will interact with the FBR via electronic notices, responses, and hearings through the IRIS system. Physical verification or recovery, when legally required, will be managed by separate field teams.

The Finance Bill also establishes a legal framework for faceless audits, assessments, and appeals, ensuring the smooth implementation of this new tax system.