Pakistan’s tax administration is moving further towards a technology-driven assessment system. Through SRO 1665(I)/2026, the FBR has introduced a new framework for the National Faceless Centre, covering audits, assessments and proceedings relating to unexplained income and assets under Section 111, as well as audits under Sections 177 and 214C.
An important feature is the separation of functions. The Centre will have Audit, Assessment, Quality Control and Field Operations wings, with cases allocated through an algorithm. Significantly, the same officer cannot perform more than one of the audit, assessment or quality-control functions for the same taxpayer and tax year. The identity of the officer handling a particular function will also not ordinarily be disclosed to the taxpayer.
For taxpayers, this means that IRIS will become even more central to tax proceedings. Notices, orders and audit reports will be generated electronically with a Digital Identification Number (DIN), while replies, evidence and supporting documents will generally have to be submitted electronically. Physical verification has not disappeared altogether, it may still be undertaken where justified, but the reasons must be recorded and the process routed through the Field Operations Wing. The framework therefore represents a shift from officer-centric proceedings towards a more digitally allocated and documented audit trail.