FBR AI system to focus first on companies
Islamabad — The Federal Board of Revenue’s (FBR) new artificial-intelligence tools will, in the first phase, put corporate returns and non-salary returns ahead of others when cases are picked for audit through the Compliance Risk Management (CRM) System — the board’s risk-based platform for deciding who is examined.
Sources familiar with the plan said high-risk company cases would be chosen for audit through the FBR AI system. They added that salary returns with missing papers or short payment could still be queried through CRM, while data on non-corporate returns would be reviewed for audit purposes. “We are not going after the salaried class under the new AI system,” they said, noting that the tools would improve over time through learning and testing.
Officers cannot pick cases on their own from 1 September
From 1 September 2026, the FBR has barred Inland Revenue field formations — the local tax offices that handle assessments — from selecting income-tax assessment cases unless those cases have been selected and assigned through CRM.
The circular also says that, from the same date, no officer may start or amend new assessment proceedings under sections 121, 122, 122A and 122C of the Income Tax Ordinance, 2001 unless CRM has selected and assigned the case. Proceedings begun in breach of the circular are treated as unauthorised and may be declared void from the start by the competent authority.
Assessment work already opened and still running as of 31 August 2026 may be finished under the previous rules. Any fresh amendment, reassessment or new show-cause notice on those cases issued on or after 1 September 2026 must follow CRM-based selection.
How the CRM system must be run
The Directorate-General (Compliance Risk Management) has been told to keep the CRM System running without interruption and to give field offices technical support, training and guidance. Any downtime or technical fault that affects CRM must be reported to the Member (IR-Operations) within 24 hours.
Anyone seeking an exemption from CRM-based selection must apply in writing to the Member (Inland Revenue – Operations) with full reasons. No exemption is valid unless that member, or an officer duly authorised by him, approves it in writing.
Timeline: what has happened so far
- 31 August 2026: Assessment proceedings already started and still in progress may be concluded under the existing framework.
- 1 September 2026: Field officers may not select new income-tax assessment cases, or start fresh amendments under the listed ordinance sections, unless CRM selects and assigns the case.
- 1 September 2026 onward: New amendments, reassessments or show-cause notices linked to older cases must also follow CRM selection.
- First phase of AI-backed audit selection: Corporate and non-salary returns are to be prioritised; high-risk corporate cases are to be chosen through the AI system.
Aasan alfaaz mein
FBR ab audit ke liye AI aur CRM system use karega, pehle companies aur non-salary returns pe zyada focus hoga. Naukarshahi class ko naya AI system target nahi kar raha, sources ne kaha. 1 September 2026 se tax officer khud case nahi chun sakte — sirf CRM se assign hone wale cases. Agar pehle se case chal raha ho (31 August tak), woh purane tariqe se khatam ho sakta hai.
