BR100 Decreased By (-0.55%)
BR30 Decreased By (-0.86%)
KSE100 Decreased By (-0.47%)
KSE30 Decreased By (-0.6%)
AGHA 6.05 Decreased By ▼ -0.05 (-0.82%)
BECO 3.83 Decreased By ▼ -0.05 (-1.29%)
BML 58.33 Decreased By ▼ -1.66 (-2.77%)
BOP 28.35 Decreased By ▼ -0.31 (-1.08%)
CNERGY 13.64 Decreased By ▼ -0.44 (-3.13%)
CSIL 5.21 Increased By ▲ 0.02 (0.39%)
FCCL 52.28 Decreased By ▼ -0.33 (-0.63%)
FFL 12.90 Decreased By ▼ -0.09 (-0.69%)
FNEL 1.13 Increased By ▲ 0.01 (0.89%)
KEL 5.79 Decreased By ▼ -0.17 (-2.85%)
KOSM 5.51 Increased By ▲ 0.22 (4.16%)
LOTCHEM 23.89 Decreased By ▼ -0.58 (-2.37%)
MLCF 90.51 Decreased By ▼ -0.52 (-0.57%)
NBP 159.72 Decreased By ▼ -2.38 (-1.47%)
NCPL 49.60 Increased By ▲ 0.59 (1.2%)
NPL 51.80 Decreased By ▼ -0.61 (-1.16%)
OGDC 306.78 Increased By ▲ 0.57 (0.19%)
PACE 9.15 Decreased By ▼ -0.10 (-1.08%)
PAEL 32.33 Decreased By ▼ -0.39 (-1.19%)
PIBTL 12.93 Decreased By ▼ -0.15 (-1.15%)
PPL 213.93 Decreased By ▼ -1.59 (-0.74%)
PRL 96.96 Decreased By ▼ -3.85 (-3.82%)
PTC 45.19 Decreased By ▼ -0.83 (-1.8%)
SSGC 22.53 Decreased By ▼ -0.61 (-2.64%)
TBL 9.02 Decreased By ▼ -0.12 (-1.31%)
TELE 6.72 Decreased By ▼ -0.09 (-1.32%)
TPL 25.91 Increased By ▲ 1.15 (4.64%)
TPLP 12.60 Increased By ▲ 0.31 (2.52%)
TREET 23.46 Decreased By ▼ -0.52 (-2.17%)
TRG 51.96 Decreased By ▼ -1.12 (-2.11%)

ISLAMABAD: The Federal Board of Revenue (FBR) has introduced the concept of digitally operated settlement of tax proceedings and Faceless Regime for Audit, Assessment, Appeals and Jurisdiction to facilitate the taxpayers.

The FBR has explained that the Clause (1AA) has been inserted in Section 2 to define “algorithmic settlement mechanism” with reference to the new Section 134B.

Section l34B empowers the Board to establish a digitally operated algorithmic settlement mechanism for settlement of tax proceedings at any stage before any assessment or amendment of assessment under sections 121, 122 or 122E, through revision of return under sub-section (6) of Section 1.14. Where the mechanism calculates and presents a settlement offer to the taxpayer - computed on the basis of the stage of proceedings, the taxpayer’s compliance history. the nature and character of the discrepancy and such other basis as the Board may consider relevant the taxpayer may, within ten days, accept the offer on IRIS, deposit the settlement amount along with the revised return and revise “the relevant return of income.”

On such acceptance, the issues confronted through the notice of selection for audit, notice under Section 111, audit report under Section 177(6) or notice under Section 122(9), as the case may be, shall stand abated without precluding proceedings on any other issue or tax year.

Consequential amendments have been made in section 114: sub-section (6) now recognizes a revision of return where a taxpayer avails a settlement offered by the mechanism, and a new sub-section (68) provides that in such a case the approval of the Commissioner shall not be required and no separate penalty or default surcharge shall be payable, the FBR added.

Through the Finance Act, 2026, a comprehensive faceless regime has been introduced in the Ordinance. The definition of “assessment” in clause (5) of Section 2 has been expanded to include “faceless assessment,” and a new clause (3 5) (1A) has been inserted to define “National faceless centre.” Section 227D has been substituted to empower the Board to establish a National faceless centre (the centre) for conducting proceedings under the Ordinance in a faceless manner and to specify its jurisdiction, powers and functions.

The centre shall comprise a Director General and such Chief Commissioners, Commissioners and other Income Tax Authorities and support staff as the Board may deem fit, organized into such wings and units as may be prescribed. The functions of audit, assessment and quality control for a specific case and tax year are required to be performed by separate officers, and all communications, whether among the units or with the taxpayer or his authorized representative, shall be through electronic means, the FBR added.

Copyright Business Recorder, 2026

Comments

200 characters remaining