FBR Launches National Faceless Centre Tax Proceedings Framework

The Federal Board of Revenue (FBR) has introduced a new framework for conducting tax audits, assessments and related proceedings through the National Faceless Centre (NFC), with the system taking effect on October 15, 2026.

Under SRO 1828(I)/2026, the FBR has enforced Chapter XX of the Income Tax Rules, 2002. Meanwhile, SRO 1825(I)/2026 brings Chapter VIAC of the Sales Tax Rules, 2006, into force from the same date. The framework provides for electronic processing of tax proceedings, the separation of official responsibilities and quality-control reviews to strengthen transparency and procedural oversight.

Under the income tax rules, the faceless system applies to cases designated under Section 122E of the Income Tax Ordinance, 2001, rather than automatically extending to all taxpayers.

The designated proceedings cover audits conducted under Sections 177 and 214C, cases involving Section 111, and assessments carried out under Chapter X of the Ordinance.

The rules require audit, assessment and quality-control responsibilities for a particular case and tax year to be allocated to separate officers or units, ensuring that these functions remain distinct.

All notices, orders and other official communications must be generated through the FBR's computerised system and include a Digital Identification Number (DIN).

Taxpayers and their authorised representatives must submit responses, supporting documents and evidence electronically through their designated IRIS accounts.

The framework also permits physical verification by the Field Operations Wing when necessary, provided the required authorisation is obtained. In specified circumstances, cases may be transferred to another tax authority where physical records, repeated verification or specialised handling are required.

Audit reports, adjudication notices and assessment orders will also be subject to quality-control checks in accordance with the prescribed procedures.

The rules further extend to penalty proceedings under Section 182 and default surcharge matters under Section 205 of the Income Tax Ordinance.

Overall, the new framework establishes a formal mechanism for handling designated tax cases through electronic communications, independent allocation of official functions and procedural reviews, while retaining the option of physical verification wherever required.