Faceless audits: FBR unveils new procedure

The Federal Board of Revenue (FBR) in Pakistan has introduced a new procedure for conducting faceless audits of taxpayers. This procedure defines the roles and duties of the Faceless Audit Unit and its officers. The Faceless Audit Unit is responsible for performing various audit functions, such as audits under section 25 of the Sales Tax Act, proceedings and orders under section 11E of the Act, and any related proceedings including issuing notices and requisitions for information and evidence.

These audits may also involve obtaining information from other sources and seeking physical verification or technical assistance from specialized units. After considering explanations and records of any e-hearings, the Unit Officer will issue an audit report containing observations, findings, and reasons for rejecting any explanations provided by the taxpayer.

Once the audit report is issued, the audit function for that case is considered complete, and the record is made available to the assessment unit through automated allocation.