FBR introduces automated scrutiny of tax returns

The Federal Board of Revenue has established an automated process to flag errors and inconsistencies in income tax returns and notify taxpayers before starting legal or penalty proceedings. Mettis Global reported that the measure was set out in SRO 2098(I)/2026, dated November 10, through a new Rule 38B in the Income Tax Rules, 2002. The system, including CRM, can send advance notices through IRIS.

Taxpayers must be given at least seven days to respond, and a reminder must also allow a minimum of seven days. They can explain or correct the identified issues, while the relevant Inland Revenue officer will assess their reply, or absence of one, and decide whether further action is needed. The notices, replies and follow-up actions will be recorded in a system dashboard.