New jurisdiction framework gives dedicated commissioners authority over faceless audits, assessments, recovery, penalties and quality control
ISLAMABAD, October 6, 2026: The Federal Board of Revenue (FBR) has notified detailed jurisdiction and powers for Chief Commissioners and Commissioners of Inland Revenue working under the National Faceless Centre (NFC), establishing a dedicated framework for faceless tax audits, assessments, quality control and field operations.
The notification, issued by the FBR’s Inland Revenue Operations Wing on September 29, 2026, will come into force with effect from October 1, 2026.
The new framework allows the Chief Commissioner, National Faceless Centre, to exercise powers and perform functions under the Income Tax Ordinance, 2001, Sales Tax Act, 1990, Federal Excise Act, 2005, Islamabad Capital Territory (Tax on Services) Ordinance, 2001, relevant provisions of the Finance Act, 1989 and Workers’ Welfare Fund Ordinance, 1971.
The Chief Commissioner may exercise exclusive or concurrent jurisdiction over persons, classes of persons, cases or classes of cases assigned to the National Faceless Centre, in addition to jurisdiction already assigned to the relevant tax office.
Algorithm-based assignment of taxpayers
A key feature of the notification is the use of an automated, algorithm-based assignment system.
The Chief Commissioner may assign exclusive or concurrent jurisdiction, powers and functions to Commissioners Inland Revenue working in the National Faceless Audit Wing, Assessment Wing, Quality Control Wing and Field Operations Wing.
The FBR may also assign jurisdiction directly to the Chief Commissioner or Commissioners through an automated assignment system where it considers this appropriate.
National Faceless Audit Wing
Commissioners assigned to the National Faceless Audit Wing will exercise powers under the relevant income tax, sales tax, federal excise and other applicable laws.
Their responsibilities include conducting audits under Section 122E of the Income Tax Ordinance, 2001, as well as proceedings under Section 111 relating to unexplained income and assets.
The Audit Wing will also have powers to call for information from taxpayers, registered persons or other persons, impose penalties for specified non-compliance, conduct audits to determine taxable income or correct tax liabilities and refunds, and submit audit reports.
It will also implement directions issued by courts and appellate authorities concerning audit-related functions.
National Faceless Assessment Wing
The National Faceless Assessment Wing will be responsible for a broad range of assessment-related functions.
Its powers include assessments under Section 122E of the Income Tax Ordinance, relevant sales tax and federal excise provisions, and best-judgement assessments under Section 121 of the Income Tax Ordinance.
Commissioners in the Assessment Wing will also be able to exercise revisionary powers under Section 122A, impose default surcharge and penalties, rectify mistakes apparent from the record, call for information and issue notices.
The wing may also allow tax credits or adjustments of refunds, perform assessment-related functions for determining correct tax liability, condone specified time limits and give effect to appellate authorities’ directions.
Quality Control Wing to review draft orders
The National Faceless Quality Control Wing will undertake administrative review and make recommendations regarding audit reports and assessment orders assigned in draft form.
Its jurisdiction will cover persons or classes of persons and specific tax years or tax periods assigned to the National Faceless Audit or Assessment Wings through the FBR’s algorithm-based system.
The Quality Control Wing will therefore provide an additional review layer within the faceless tax administration structure before relevant proceedings are finalised.
Field Operations Wing given enforcement functions
The National Faceless Field Operations Wing will perform several functions requiring physical or enforcement-related intervention.
Its responsibilities include supervision and maintenance of National Faceless Facilitation Centres and service of notices, orders and other documents under the relevant tax laws.
The Field Operations Wing will also have authority to conduct physical verification of matters including the nature and size of a business, assets, investments, expenditures and other information required for proceedings assigned to the National Faceless Centre.
In addition, it will undertake tax recovery under the relevant provisions of the Income Tax Ordinance, Sales Tax Act and Federal Excise Act, along with associated rules.
Jurisdiction ends after assigned proceedings
The FBR has clarified that concurrent jurisdiction assigned to an officer will be exclusive in respect of the specific tasks, tax years or tax periods allocated to the National Faceless Centre.
Such jurisdiction, or the relevant portion of it, will automatically cease once the specific audit, assessment, penalty or default surcharge proceedings assigned to the officer have been finalised.
Where required, the jurisdiction may subsequently be reassigned to another authorised officer unless the FBR directs otherwise.
The notification marks a significant expansion of the operational framework for the National Faceless Centre, bringing audit, assessment, quality control and field enforcement functions within a dedicated assignment-based structure.