FBR plans new income tax rules to boost transparency and automation

Federal Board of Revenue (FBR) has decided to introduce changes to the income tax rules under its Automation and Digitalisation Plan to enhance transparency in the tax system.

According to details, the FBR has proposed introducing a faceless tax assessment system that would eliminate direct contact between taxpayers and tax officials during the assessment process.

Taxpayers would submit their responses and supporting documents online through the Inland Revenue Information System (IRIS)

Under the proposed changes, the Faceless Assessment Unit would be empowered to determine tax liabilities and amend tax assessments. The proposal also seeks to authorise the unit to issue notices and impose penalties.

The FBR has further proposed allowing tax officials to conduct online hearings and physical verification where required. A new provision governing faceless assessments is also expected to be incorporated into the income tax rules.

Under the proposed framework, the Faceless Assessment Unit would also be responsible for implementing decisions on appeals in tax-related matters.

The proposed system would provide taxpayers with an opportunity to present their cases and submit relevant information through the digital platform.

The initiative is aimed at increasing transparency, streamlining tax assessments and reducing direct interaction between taxpayers and tax officials.