IR Commissioners’ powers taken back: FBR wing to only conduct faceless audits, assessments

Business Recorder reported that the Federal Board of Revenue has taken back discretionary powers that let Commissioners Inland Revenue carry out audits and assessments of taxpayers on their own. Under a notification numbered S.R.O. 1665(I)2026, issued on Thursday, amendments to the Income Tax Rules, 2002 now confine these functions to the National Faceless Center. The change covers audits under sections 177 and 214C, along with proceedings under section 111 of the Income Tax Ordinance 2001.

The Center will conduct audits, assessments, amendments of assessments, best judgment assessments and provisional assessments, along with steps such as issuing notices, gathering evidence and imposing penalties or default surcharges. It has four wings: Audit, Assessment, Quality Control and Field Operations. It will be led by a Director General and staffed by officers from Chief Commissioner down to Assistant Commissioner, along with any income tax authorities. Cases move to the Center when the Board assigns a taxpayer, class of taxpayers, income or case to it under section 122E(2).