ISLAMABAD: The faceless audit and assessment system is proposed to be introduced in all the four taxes administered by the Federal Board of Revenue (FBR) under the Finance Bill 2026.
The provisions are identical. In Income Tax Ordinance, 2001 section 122E is proposed to be inserted which provides that audit proceedings under section 177 and subsequent amendment proceedings under section 122 / 111 may be made in a faceless manner as may be prescribed by the Board.
The proposed provision envisaged that where opportunity of hearing is to be provided to the taxpayer during the course of audit the same shall be undertaken through e-hearing under section 227E of the Ordinance and identity of the officer including facial and voice identity conducting such hearing shall be kept confidential.
Similarly, system of faceless appeal is being introduced through insertion of section 129A of the Income Tax Ordinance, 2001 in respect of appeals which are to be decided by the Commissioner (Appeals). However, the existing system of second appeal by the Tribunal has been continued.
Copyright Business Recorder, 2026
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