FBR opens faceless tax centre to end direct contact

The Federal Board of Revenue has established a National Faceless Centre in Islamabad to shift tax audits and assessments to a centralised digital system, ending direct contact between taxpayers and tax officers.

The centre is part of the New Tax Operating Model, which the federal government approved in principle in June, according to ProPakistani. The Associated Press of Pakistan reported that the move is intended to reform the audit and assessment process.

Under the new system, audit cases will be selected through a computerised risk-based process instead of by individual officers. Once selected, a case will be assigned automatically to an officer anywhere in the country. The taxpayer will not be told the identity of the officer handling the case, and the officer will have no control over which cases are assigned to them.

The FBR has also separated the main stages of a tax case. One officer will conduct the audit, another will prepare the assessment, and a third will review the work before an order is issued. As a result, no single officer will control a taxpayer's case from the audit stage through to the final decision.

Taxpayers will receive notices, submit replies and attend hearings electronically through the FBR's IRIS system. Where the law requires physical verification or recovery, separate field teams will carry out that work.

ProPakistani reported that the Finance Bill provides a legal framework for faceless audits, assessments and appeals. The new model is designed to limit individual discretion in tax cases, according to the outlet.