The Federal Board of Revenue (FBR) has introduced a Compliance Risk Management (CRM)-based system for selecting cases for income tax assessments, effective September 1, 2026.
Under Income Tax Circular No. 1 of 2026, Inland Revenue officers will no longer be allowed to initiate new income tax assessment, reassessment or amendment proceedings unless a case has been selected and assigned through the FBR’s CRM system.
The new system aims to make tax case selection more transparent, consistent and objective, while accelerating the digital transformation of Pakistan’s tax administration.
Assessment proceedings already in progress as of August 31, 2026, may continue under the existing procedure. However, any new reassessment, amendment or show-cause notice issued from September 1 must comply with the mandatory CRM-based selection process.
The FBR has directed its field formations to ensure strict compliance and instructed the Compliance Risk Management Directorate to maintain the system and provide technical support. Any exemption from the CRM process will require written approval from the Member Inland Revenue (Operations) or an authorised officer.
The latest directive supersedes earlier instructions that conflict with the mandatory use of the CRM system, marking a major step toward digitising tax assessments and strengthening compliance management in Pakistan.
