ISLAMABAD: Federal Board of Revenue (FBR) on Monday approved establishment of Directorate General of Compliance Risk Management to develop risk profiles of the main segments and sectors.
The FBR issued a notification stating that the competent authority had approved establishment of the directorate general of compliance risk management under the FBR.
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Previously, the FBR issued SRO 1796(I)/2022 to specify the functions, jurisdiction and power of the directorate and its officers.
According to the SRO, the following shall be the functions of the Directorate General of Compliance Risk Management, namely:
(a) develop risk profile on the main segments and sectors related to the four pillar’s of compliance (registration, filing, reporting and payment) to be included in the risk register. This would be required at least quarterly and annually;
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(b) creation and updation of the risk register;
(c) data collection (both internal and external sources) through an integrated system with Information Technology Wing of FBR for the purpose of creation of an indigenous data bank;
(d) environmental scanning, research and studies of approved compliance topics;
(e) collection of risk evaluation reports from risk owners (field formations) based upon taxpayer’s segment at all four compliance level (registration, filing correct reporting, payment and collection) on a quarterly and annual basis and update of risk portal;
(f) collection of third party data;
(g) planning risk treatment or mitigate strategies, developing compliance improvement plan(s), assisting field units in case selection exercise;
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(h) periodic measurement of risk management performance against the key risk indicators, risk identification analysis, tax gap analysis through scientific and analytical tools;
(i) operation of data analysis centers by utilizing services of data analysts and data scientists;
(i) development and implementation of CRM policy, frameworks and its practical implementation, design, develop and maintain the structured CRM methodologies and procedures e.g. design of a risk policy and processes based on CRM framework at FBR;
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(k) management of general administration finance, human resources, budget;
(l) to assign any responsibility or function to Inland Revenue field formation;
(m) to coordinate with any of Wing of Directorate General for the purpose of CRM; and
(n) hiring of sectoral or business experts for assistance in sectoral studies, analysis of business trends and identification of sectoral risks.
