Karachi, February 25, 2025 – The Federal Board of Revenue (FBR) has taken a significant step towards improving tax compliance by developing an automated system for handling adjustments of unregistered supplies through credit notes.
This new system is aimed at ensuring transparency and minimizing fraudulent practices in tax adjustments.
In an official communication addressed to Chief Commissioners of Inland Revenue across Large Taxpayer Offices (LTOs), Medium Tax Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs), the FBR outlined the implementation of this automated mechanism. The initiative focuses on allowing adjustments of sales returns against unregistered supplies while maintaining stringent verification measures.
Previously, the adjustment of sales returns via credit notes for unregistered supplies was restricted in the automated system due to its misuse by fraudulent entities, who manipulated fake credit notes to claim undue benefits. To prevent such malpractices, claimants were required to seek approval from the respective Commissioner-IR, who would then verify the legitimacy of transactions before forwarding the case to the FBR for final authorization.
With the development of this new automated system within the IRIS module, the FBR has now provided an interface for the Commissioner-IR to scrutinize and approve taxpayer requests directly. This advancement is expected to streamline the process, reducing administrative delays and ensuring that only genuine claims are processed through the system.
The FBR has urged field formations to utilize this automated system efficiently and process taxpayer cases in accordance with the relevant legal provisions. By integrating this system, the FBR aims to enhance regulatory compliance and strengthen tax administration in Pakistan.
Going forward, the FBR will continue monitoring the implementation of this system and making necessary enhancements to further improve transparency and efficiency in tax adjustments. This measure reflects the authority’s commitment to leveraging technology for better governance and reducing avenues for tax fraud in the country.