ISLAMABAD: The Federal Board of Revenue (FBR) has formally established the National Faceless Centre (NFC) in Islamabad as part of efforts to make Pakistan’s tax system more transparent and eliminate traditional methods of harassment and undue pressure on the business community.
Under the new tax model, taxpayers and tax officials will no longer have any physical interaction during the audit and assessment process. The initiative is aimed at reducing human interference and ensuring greater transparency in tax administration.
Under the system, the decision to select an individual or company for audit will not be made at the discretion of a tax officer. Instead, a computerized Risk Management System will identify potentially suspicious accounts and select cases for audit.
Once selected, a case will be automatically assigned to an officer located anywhere in the country without revealing the identity of the taxpayer to the assigned official, according to the new mechanism.
The system also introduces a separation of responsibilities to strengthen checks and balances. One officer will conduct the audit, a second officer will prepare the assessment, while a third officer will carry out the final review.
Taxpayers will also be able to submit responses to tax notices and participate in hearings entirely online through the IRIS system, with the process designed to eliminate the need for physical appearances before tax officials.
The FBR has said the faceless tax administration model is intended to improve transparency, reduce direct interaction between taxpayers and officials, and modernize Pakistan’s tax collection and audit mechanisms.