The new system will automate case selection, officer assignment and tax proceedings while reducing direct interaction between taxpayers and officials.
The Federal Board of Revenue (FBR) has launched the National Faceless Centre (NFC) in Islamabad as part of a major reform aimed at changing the way tax audits and assessments are conducted across Pakistan.
The initiative was approved during a meeting of the Board in Council on Friday. The new framework is designed to remove direct interaction between taxpayers and tax officers and shift tax proceedings towards a fully digital and automated process.
Computer-Based Case Selection
Under the previous system, taxpayers whose returns were selected for audit generally had to deal with a designated tax officer at a specific office. The new mechanism will replace this arrangement with a computerised, risk-based system for selecting cases.
Once a case is selected, it will be automatically assigned to an officer, regardless of where that official is located in Pakistan. Taxpayers will not be informed about the identity of the officer handling their case, while officers will also have no influence over the cases assigned to them.
Three-Level Review System
The FBR has introduced multiple layers of oversight under the faceless model. One officer will conduct the audit, another will undertake the assessment, while a third official will review the proceedings for quality before a final order is issued.
This structure is intended to prevent a single officer from handling a taxpayer’s case throughout the entire process.
Digital Tax Proceedings
Notices, taxpayer responses and hearings will be managed electronically through the FBR’s IRIS system. Physical verification or recovery activities, where legally required, will be undertaken separately by designated field teams.
Legal Framework and Implementation
The National Faceless Centre derives its legal authority from the Finance Act, 2026. It will operate under a Chief Commissioner Inland Revenue and include dedicated wings for faceless audits, assessments, quality control and field operations.
The FBR has also established a Programme Management Unit to supervise implementation and coordinate the rollout of the new framework.
According to the FBR, the reform is intended to promote consistent treatment of taxpayers, strengthen data-based decision-making and reduce concerns linked to direct contact between taxpayers and tax officials.
The National Faceless Centre is expected to make tax proceedings more transparent, standardised and efficient for taxpayers across Pakistan.