Section 175 of the Income Tax Ordinance, 2001 allows authorised tax officials to access premises, accounts, documents and computers without prior notice for enforcement, audits and tax surveys.

ISLAMABAD, October 23, 2026: The Federal Board of Revenue (FBR) has powers under Section 175 of the Income Tax Ordinance, 2001 to enter premises without prior notice for tax enforcement, audits and surveys during Tax Year 2027.

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The FBR has issued an updated version of the Income Tax Ordinance, 2001, incorporating amendments up to June 30, 2026, for Tax Year 2027, covering the period from July 1, 2026 to June 30, 2027.

Under Section 175, the Commissioner or an officer authorised in writing may access premises, places, accounts, documents and computers at any time without prior notice. The provision also includes real-time electronic access to relevant information.

Authorised officials may stamp, copy or extract information from records and computer systems. They may also impound accounts and documents for examination or prosecution purposes.

Where required electronic information or a computer disk is not provided, officials may retain the computer for as long as necessary to copy the relevant data. They are also authorised to prepare an inventory of articles found during an inspection.

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The Commissioner may authorise a valuer or expert to enter premises and carry out assigned tasks. Occupiers, including owners, managers or other responsible persons, must provide reasonable facilities and assistance to enable officials to exercise their access powers.

The law also establishes safeguards concerning impounded material. Officials must sign for retained accounts, documents or computers, while affected individuals may examine the material and make copies during regular office hours under prescribed supervision.

If retained material is lost or destroyed while in the Commissioner’s possession, the law requires reasonable compensation to the owner.

Section 175 further provides that its powers apply notwithstanding other rules concerning privilege or public interest in relation to access to premises and the production of records.

The Federal Board of Revenue may also frame rules governing real-time electronic access for audits and surveys of persons liable to tax.