Tax proceedings: FBR launches concept of digitally operated settlement

Business Recorder reported that the Federal Board of Revenue (FBR) has unveiled a computer-driven method for settling tax cases at any stage before an assessment is finalised or amended. The system calculates a settlement offer using the stage of proceedings, the taxpayer's compliance record, the nature of the discrepancy and other factors the Board considers relevant. Within ten days, taxpayers can accept the offer on the IRIS portal, deposit the amount with a revised return, and have the notice-related issues closed, though other issues or tax years remain open.

Taking up the offer does not need the Commissioner's sign-off, and no further penalty or default surcharge will be levied, the FBR explained. Section 114 has also been amended so that revisions made under the mechanism are formally recognised.

Separately, the Finance Act, 2026 introduced a faceless regime covering audit, assessment and appeals. A National Faceless Centre, which includes a Director General, will handle proceedings, with audit, assessment and quality control for each case assigned to separate officers. All communication between units and taxpayers will be electronic.