The FBR has introduced a National Faceless Centre to handle audits, assessments and cases involving undisclosed income and assets under a digital framework.
ISLAMABAD, September 30, 2026: The Federal Board of Revenue (FBR) has introduced a faceless audit and assessment framework covering cases involving undisclosed income and assets, bringing proceedings under Section 111 of the Income Tax Ordinance, 2001, within the new system.
The FBR issued SRO 1665(I)/2026, inserting a new Chapter XX into the Income Tax Rules, 2002, to establish procedures for conducting audits, assessments and related proceedings through the National Faceless Centre.
The framework provides for the faceless handling of cases involving unexplained income and assets, as well as audits under Sections 177 and 214C, assessments and amendments to assessments under the Income Tax Ordinance.
National Faceless Centre established
Under the new rules, the National Faceless Centre will comprise four wings: Audit, Assessment, Quality Control and Field Operations.
Each wing may contain multiple units, with responsibilities allocated through an algorithm designed by the FBR.
The allocation system will separate audit, assessment and quality control functions among different officers or units. No officer will perform more than one of these functions in the same case for the same tax year.
The identities of officers assigned to individual functions will remain recorded in the FBR’s electronic system but will not be disclosed in accordance with the relevant provisions of the Income Tax Ordinance.
Digital communication made mandatory
All notices, orders, audit reports and other communications issued by the Centre must be generated through the FBR’s computerised system and carry a Digital Identification Number (DIN).
Taxpayers and their authorised representatives will be required to submit replies, documents, evidence and other communications through their designated accounts on the IRIS system.
Documents must be provided electronically in the formats prescribed by the FBR.
During an audit, officers may seek additional information and explanations, obtain information from third parties and request technical assistance, including valuation, forensic or sector-specific expertise.
Where necessary, statements on oath may also be recorded through electronic hearings.
Physical verification and case transfers
The rules allow physical verification of businesses, assets, investments, expenditure and other relevant matters where justified.
The officer concerned must record the reasons for the verification and refer the request to the Chief Commissioner of the National Faceless Centre.
The Chief Commissioner may direct the Field Operations Wing to conduct the verification, while the resulting report must be uploaded to the electronic record.
Cases may be transferred where faceless proceedings are impractical
The framework allows cases to be transferred to another tax authority where faceless proceedings are impractical because of extensive physical records, repeated verification requirements, search or seizure proceedings, or links with other pending cases.
This provision provides a mechanism for dealing with cases where the nature or circumstances of proceedings require action outside the standard faceless process.
The framework also provides for penalties and default surcharge where applicable.
The FBR may issue further instructions and standard operating procedures to implement the new system.
Rules to take effect through notified dates
The rules will take effect on dates notified by the FBR.
The Board may specify different commencement dates for different categories of cases or proceedings, allowing the faceless audit and assessment framework to be introduced in phases.