IR Commissioners’ powers taken back: FBR wing to only conduct faceless audits, assessments

On Thursday, the Federal Board of Revenue (FBR) revoked the discretionary powers of Inland Revenue Commissioners to unilaterally conduct audits and assessments of taxpayers through direct interactions under certain sections of the Income Tax Ordinance 2001. This amendment was brought about via an S.R.O. 1665(I)2026 issued by the FBR, which modifies the Income Tax Rules, 2002.

The FBR has now designated the National Faceless Center within its structure to handle audits and assessments of taxpayers under section 177 or section 214C and proceedings under section 111 of the Income Tax Ordinance 2001. The Center operates in a faceless manner for these cases, as explained by the FBR. The center is comprised of various officials and authorities, including a Director General and officials from Audit Wing, Assessment Wing, Quality Control Wing, and Field Operations Wing.

According to the FBR, the National Faceless Center will be responsible for conducting audits under section 177 or section 214C, proceedings and orders under section 111, as well as various assessments, amendments, best judgment assessments, and provisional assessments under Part II of Chapter X of the Income Tax Ordinance 2001. The Center will also handle any proceedings incidental or ancillary to the aforementioned cases, such as issuing notices under sections 176 and 177, obtaining information and evidence, and imposing penalties or default surcharges from these proceedings.